U.S. Spring Housing Market Slows Amid High Rates, Rising Cancellations
The U.S. housing market remains sluggish this spring as high mortgage rates and weak buyer sentiment weigh on demand.
Sales of existing homes dropped 0.5% in April compared to March, landing at a seasonally adjusted annual rate of 4 million units, according to the National Association of Realtors. That marks the slowest April for home sales since the Great Recession in 2009.
CNBC data shows that compared to April 2024, sales are down 2%, missing economists’ expectations of a 2.7% gain.
These figures reflect closings from contracts likely signed in February and March—before mortgage rates climbed again in April.
Inventory Rises, Prices Begin to Cool
Housing inventory increased sharply, rising 9% month-over-month and 21% year-over-year. By the end of April, 1.45 million homes were listed for sale—representing a 4.4-month supply at the current pace.
While this is the highest inventory level in five years, it still falls short of the six-month benchmark for a balanced market.
The added supply is beginning to cool price growth. The median sale price in April reached $414,000, a 1.8% increase from a year earlier. Although it’s a record high for April, it represents the slowest annual price growth since July 2023.
Notably, home prices fell in both the South and West regions.
Homes Take Longer to Sell, Cancellation Rates Surge
On average, homes spent 29 days on the market in April. That’s slightly faster than in March but slower than April of last year.
First-time buyers made up 34% of all purchases—roughly in line with last year’s share.
However, more buyers are backing out. The cancellation rate rose to 7% in April, nearly double the recent average of 3–4%.
This signals growing hesitation among buyers facing rising borrowing costs and uncertain market conditions.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
