Sales of existing single-family homes edged down 0.5% in April after a 3.7% rise in March as the market continues to struggle even in the midst of the spring home buying season and ultra low mortgage rates.
The National Association of Realtors reported Thursday morning that sales of previously owned single-family homes fell to a seasonally adjusted annual rate of 4.42 million units in April from a 4.44 million rate in March.
Sales rose 6.2% in the Midwest, but were flat in the South and fell 8.5% in the Northeast and 2.6% in the West.
However, the median price of a single-family home rose 1.6% from March to $163,200 in April -- the second consecutive monthly rise, according to NAR. Prices of condominiums and cooperatives jumped 8.5% from March to April.
The RE/MAX Housing Report also picked up a 2.2% rise in house prices in April. "We’re encouraged to see home prices rising this year, and we are hoping that this will motivate buyers who have been waiting for a bottom," said RE/MAX chief executive Margaret Kelly.
Prices rose in 34 of the 54 metropolitan markets tracked by the Denver-based Realtor.
"Existing home sales are expected to trend up unevenly through next year," said NAR chief economist Lawrence Yun. The trade group forecasts that home sales (including condos and co-ops) will total 5.3 million units this year, up from 4.9 million in 2010.
Tight credit and low appraisals continue to be headwinds, stifling sales.
A NAR survey found that 11% of Realtors reported a contract cancellation in April due an appraisal coming in below the price negotiated between the buyer and seller and 14% said a contract was renegotiated to a lower sales price due a low appraisal.
The Realtors also reported an increase in first-time homeowners in the market. First timers purchased 36% of homes in April, up from 33% in March. Investor share of purchases slipped to 20% from 22% in March.
