In April 2025, U.S. existing-home sales fell by 0.5%, reaching an annual rate of 4.00 million units. This is the lowest rate for April in 15 years. The drop is mainly due to high mortgage rates and rising home prices, which continue to make homes less affordable. The median home price in April reached a record $414,000, up 1.8% from the previous year, even though there was a 20.8% increase in the number of homes available for sale.
Homes are now staying on the market longer, with the average listing time rising to 29 days. First-time homebuyers made up 34% of sales, which is below the healthy target of 40%. Prices also varied by region: the Northeast saw a 6.3% price increase, while the West experienced a slight 0.2% decline. The Midwest and South saw small changes in home prices.
Although the market still leans towards sellers, rising inventories and longer selling times are giving buyers more negotiating power. High mortgage rates and economic uncertainties are shaping buyer behavior, making it harder for many to enter the market. While the housing market remains active, it’s becoming increasingly difficult for potential buyers to find affordable options.
