Home sales disappoint as consumer confidence hits a 70-year low 

The latest sales numbers point to another tepid spring homebuying season if market dynamics don't shift soon.

April's existing home sales were flat compared to a year ago, though they managed to inch up 0.2% from March, according to the National Association of Realtors. The seasonally adjusted annual rate of sales was 4.02 million, falling short of the 4.1 million forecasters were expecting.

When broken down by home type, single-family sales actually declined slightly, falling 0.3% year-over-year. That dip was offset by condominium sales, which rose 2.7%, keeping overall home sales at the same pace as a year ago.

Northeast sees the biggest swings: Existing sales were fairly flat year-over-year in the West and Midwest, while they ticked up 2.7% in the South. In the Northeast, however, sales plummeted 8.2% compared to a year ago. That region also saw the biggest increase in median home prices, which were up 4.8% from April 2025.

Home price growth remains slow: Nationally, the median existing home sale price was $417,700 in April, up less than 1%. The only region to experience a decline was the West, where median sale prices fell 1.4% year-over-year. 

Inventory rose slightly, increasing 1.4% compared to a year ago, but it remains well below pre-pandemic levels. Supply was at roughly 4.4 months in April, similar to March.

Affordability improving: There was one piece of good news for buyers in the latest report: NAR's housing affordability index was at 110.6, up from 101.4 a year ago. That means a typical family had 110% of the income required to qualify for a loan last month. Affordability improved across all four regions, with the West seeing the biggest jump at 12.5%.

"Mortgage rates are lower from a year ago, and average income growth is outpacing home price gains," NAR Chief Economist Lawrence Yun noted in the report.

That combination of factors might spur home sales in a different economic environment, but even though wages were up 3.6% year-over-year in April, consumer sentiment hit the lowest level on record going back to 1952, driven by growing concerns about high prices — a likely factor in the sales slowdown.

Cautious optimism: Danielle Hale, chief economist at Realtor.com, said there are reasons to be "cautiously optimistic" for the rest of 2026. Mortgage rates will probably remain higher than originally expected because of inflation challenges, but improving affordability will help.

"Put simply, some homebuyers and sellers are moving forward with plans, and data suggest that others are waiting in the wings, should conditions improve further," Hale said.

Pending home sales ticked up over the past two weeks, which could signal a rise in closings in the coming months — though it's unclear whether that increase is the beginning of a trend, or just a blip.