Resales, median price experience declines during April

The National Associations of Realtors released recent data that revealed declines for existing home sales, median prices and foreclosures.

During April, resales dropped 0.8 percent month-over-month, settling at a rate of 5.05 million. This downward trend is surprising to economists, as many had anticipated the rate to reach as high as 5.25 million during the month.

NAR adjusted its resale figures for March as well, showing a 3.5 percent month-over-month increase to a rate of 5.09 million. This new figure is down from the original estimate of 5.1 million units.

Nationally, the median price fell by 5 percent, settling at $163,700. Inventories, however, increased by 9.9 percent to 3.8 million, which represents 9.2 months worth of supply. NAR officials predict that inventory will soon surpass 4 million units.

Foreclosures also declined, moving down 3 percent month-over-month, accounting for 37 percent of all home sales.

"Given the great affordability conditions, job creation and pent-up demand, home sales should be stronger," said Lawrence Yun, NAR's chief economist. "Although existing-home sales are expected to trend up unevenly through next year, unnecessarily tight credit is continuing to restrain the market, along with a steady level of low appraisals that result in contract cancellations."