April 2025 National Housing Market Update

National Real Estate Market Update – April 2025

The U.S. housing market continued to adjust in April, with existing-home sales dipping slightly by 0.5% compared to March, according to the National Association of REALTORS® (NAR). On a year-over-year basis, sales were down 2.0%, highlighting the continued effects of affordability and inventory shifts across the country. Regionally, sales rose in the Midwest, remained flat in the South, and declined in both the Northeast and West.

Inventory Continues to Build

Total housing inventory reached 1.45 million units at the end of April, a 9.0% increase from March and a 20.8% jump compared to one year ago. This marks the highest level of available homes in nearly five years. At the current sales pace, unsold inventory represents a 4.4-month supply—up from 4.0 months in March and 3.5 months in April 2024.

NAR Chief Economist Lawrence Yun noted the ongoing shift in supply and demand: "Home sales have been at 75% of normal or pre-pandemic activity for the past three years, even with seven million jobs added to the economy. Pent-up housing demand continues to grow, though not realized. Any meaningful decline in mortgage rates will help release this demand."

Prices Hold Steady Amid Market Changes

The median existing-home price for all housing types climbed to $414,000 in April—up 1.8% from a year ago. Price trends varied by region, with gains in the Northeast and Midwest, while the South and West saw modest declines.

• Northeast: $487,400 (+6.3%)

• Midwest: $313,300 (+3.6%)

• South: $365,300 (–0.1%)

• West: $628,500 (–0.2%)

This price stability—paired with increased inventory—signals a market that is becoming more favorable to buyers while still offering strong value for sellers.

Buyer and Seller Activity

Homes sold more quickly in April, with properties remaining on the market for an average of 29 days—down from 36 days in March, but slightly up from 26 days last April.

First-time buyers made up 34% of all transactions, up from 32% in March and 33% a year ago, showing increasing engagement from new buyers despite ongoing affordability challenges.

Cash sales accounted for 25% of all purchases, down from 26% in March and 28% a year ago. Investor and second-home buyer activity also ticked down slightly to 15%, compared to 16% last year.

Distressed sales—foreclosures and short sales—remained very low at just 2% of transactions, consistent with a stable overall market.

Mortgage Rates

As of mid-May, the 30-year fixed mortgage rate averaged 6.81%, according to Freddie Mac. That’s a slight increase from 6.76% the previous week, but still lower than the 7.02% average seen one year ago. Rates remain elevated by historical standards, but their relative stability continues to support steady buyer activity.

Single-Family vs. Condo/Co-op Sales

• Single-family home sales slipped 0.3% month-over-month and were down 1.4% year-over-year, with a median price of $418,000 (+1.7%).

• Condo and co-op sales declined 2.6% from March and 7.5% from April 2024, with a median price of $370,100 (+1.4%).

Regional Market Highlights

• Northeast: Sales fell 2.0% from March but matched last year’s levels. Median price: $487,400 (+6.3%)

• Midwest: Sales rose 2.1% month-over-month but were down 1.0% from last year. Median price: $313,300 (+3.6%)

• South: Sales were unchanged from March, down 3.2% year-over-year. Median price: $365,300 (–0.1%)

• West: Sales dropped 3.9% from March and 1.3% from last year. Median price: $628,500 (–0.2%)

Key Takeaways for Buyers & Sellers

For Buyers: The highest inventory levels in five years are giving buyers more choices and more leverage. While mortgage rates remain elevated, any future dip could unlock more affordability. With prices stabilizing in many regions, this may be a strategic window for negotiation.

For Sellers: Prices are holding strong in many markets, but higher inventory means increased competition. Homes are moving quickly again, so strong marketing, competitive pricing, and great presentation remain essential to a successful sale.

The market is gradually shifting toward balance, with more options for buyers and opportunity for sellers. As we head into summer, staying informed is key!

Krista Freshour

Realtor

865-776-9608

Information provided by National Association of Realtors