Why April Home Sales are Ahead of Last Year

Mortgage rates are down for the week but still elevated compared to a month ago.

Inventory of unsold homes jumped by 17,000 in one week—the largest gain in nearly three years—continuing a trend of growing supply as higher mortgage rates persist. Mortgage rates dipped this week, making typical payments about 3% cheaper than last year, though rates remain elevated compared to a month ago. With more homes for sale and slightly lower payments, buyers have more options heading into May, when home sales and prices usually peak. However, ongoing financial market volatility means conditions could change quickly.

Weekly Pending Home Sales

Pending home sales for single-family homes held steady at 72,000 this week, slightly above last year’s level. Over the past month and a half, sales have consistently outpaced 2024, thanks to increased supply and marginally lower buying costs. While economic uncertainties like job security and rising expenses could impact housing, these factors have had only a minor effect so far. Unemployment remains low, and homeowners are generally in strong financial shape, suggesting housing could remain resilient even if broader economic conditions worsen.

Inventory

Sales are staying slightly elevated so far this spring. Meanwhile, the supply of unsold homes continues to grow. And prices are a little lower in this market, so some buyers are motivated. As a result, greater supply enables greater sales — to an extent.

And there are now just over 719,000 single-family homes unsold on the market. There are another 220,000 condos. Unsold inventory climbed 2.4% for the week. That’s a fast clip, but not crazy. As I mentioned, the 17,000-unit gain in unsold homes on the market is the biggest week in three years. Unsold inventory is 32.5% greater than a year ago.

*Week of April 23, 2025 Available inventory of unsold homes - US single family*

New Listings

Housing supply has two parts: unsold inventory (the reservoir) and new weekly listings (the rainfall). After years of rising mortgage rates, inventory is returning to normal, but new listings have remained low. This week saw 77,000 new unsold listings for single-family homes, up 1% from last week and 12% from a year ago, plus 15,000 immediate sales. Overall, there are 4% more sellers than this time last year, so inventory is growing faster and bidding wars are less common.

Home Prices

As housing supply grows—now up 32% with only 2% more sales—buyers have more choices and sellers face more competition, which eases upward pressure on prices. This week’s median pending sale price is $399,000, nearly unchanged from last year, making it unlikely prices will surpass $400,000 this spring. The key question is how demand will hold up later in the year.

Price Reductions

Continuing the pricing pattern of recent weeks, the percentage of homes on the market with price cuts ticked up 40 basis points this week to 35.6%. Price reductions have not really been accelerating over the past month. The number of listings that have cut their price from the original list price is elevated, but it is not moving quickly.

April 2025 home sales are outpacing last year primarily due to a significant increase in available inventory, slightly lower mortgage payments, and steady buyer demand. The combination of more homes to choose from and manageable borrowing costs is supporting a modest uptick in sales, even as prices remain stable and some regions continue to see competitive conditions

If you're thinking of selling, just contact us and let's talk.

Landmark Management Services, Inc.