Sales of existing homes lost momentum in April, but remained above year-ago levels, according to the National Association of Realtors.
Existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, dropped 3.3 percent to a seasonally adjusted annual rate of 5.04 million in April from an upwardly revised 5.21 million in March, NAR reported.
“April’s setback is the result of lagging supply relative to demand and the upward pressure it’s putting on prices,” said NAR Chief Economist Lawrence Yun in a statement.
Still, Realtors report that demand from buyers remains higher than a year ago, he said.
Job growth and low interest rates should prompt more buyers to enter the market unless prices “accelerate even higher in relation to incomes,” he added.
Despite the monthly decline, sales of existing homes were still up 6.1 percent from a year ago, marking the seventh straight month that existing-home sales posted an annual increase.