Existing Home Sales Edge Higher as Affordability Improves — Evening Brief – 05.11.26

U.S. existing home sales posted a modest gain in April as improving affordability conditions and lower mortgage rates helped offset uneven consumer sentiment and broader macroeconomic uncertainty, according to data released Monday by the National Association of Realtors.

Existing home sales rose 0.2% month-over-month to a seasonally adjusted annual rate of 4.02 million in April, slightly below the 4.05 million consensus estimate but ahead of the revised 4.01 million pace recorded in March.

Regionally, sales increased in the Midwest and South, were unchanged in the Northeast and declined in the West. On a year-over-year basis, overall sales activity was flat, with gains in the South offset by declines in the Northeast and Midwest.

“Despite mixed macroeconomic signals — including a record-high stock market and historically low consumer confidence — home sales were modestly boosted by the continued improvement in housing affordability,” said Lawrence Yun. “Mortgage rates are lower from a year ago, and average income growth is outpacing home price gains.”

Housing inventory continued to improve, with total existing-home inventory rising 5.8% from March to 1.47 million units. Inventory was also up 1.4% from April 2025. Unsold inventory climbed to a 4.4-month supply at the current sales pace, up from 4.2 months in March.

Meanwhile, home prices continued to trend higher. The median existing-home price across all housing types rose to $417,700 in April from $408,800 in March and $414,000 a year earlier.

The Housing Affordability Index declined to 110.6 from 113.7 in March but improved significantly from 101.4 recorded one year ago, reflecting easing financing pressures relative to household income growth.