The nation’s spring housing market is off to another disappointing start, as existing-home sales in April posted only a slight increase despite hopes for a stronger recovery.

According to the National Association of Realtors, existing-home sales rose just 0.2% in April to a seasonally adjusted annual rate of 4.02 million homes, far below economists’ expectations of a 3% increase.

The weak performance continues a housing slowdown that has stretched on for more than three years as elevated mortgage rates and high home prices continue to discourage buyers.

Industry analysts had expected lower mortgage rates earlier this year to help revive the market during the traditionally busy spring selling season. Mortgage rates dipped below 6% in February, briefly boosting optimism among buyers and lenders. But rates later climbed again, reaching 6.37% last week amid inflation concerns tied to the war in Iran.

Economists and real-estate professionals say many potential buyers remain cautious because of affordability concerns and uncertainty surrounding the economy and job market.

The national median existing-home price reached $417,700 in April, up 0.9% from a year earlier and the highest median price ever recorded for the month of April.

Housing inventory has improved somewhat, with the number of homes for sale rising 5.8% from March and 1.4% from a year ago. Homes also stayed on the market slightly longer, averaging 32 days before selling compared to 29 days last year.

Conditions vary by region. In parts of the Northeast and Midwest, real-estate agents say strong buyer demand remains, particularly among people who delayed purchases during recent years. Meanwhile, inventories in parts of the South and West have climbed above pre-pandemic levels, placing downward pressure on prices.

Many housing experts now expect 2026 to remain another difficult year for home sales unless mortgage rates fall significantly.

Source: WSJ