The NAR data on sales of existing homes in April shows a 3.4 percent month-over-month decline to 4.28 million units after a negligible downward revision to 4.43 million units in March. Home resales are down 23.2 percent compared to April 2022. The sales level is about the 4.30 million unit consensus in the Econoday survey. NAR Chief Economist Lawrence Yun said,"Home sales are bouncing back and forth but remain above recent cyclical lows." He added,"The combination of job gains, limited inventory and fluctuating mortgage rates over the last several months have created an environment of push-pull housing demand."

Resales of single-family homes are down 3.5 percent to 3.85 million units in April from 3.99 million units in March, and down 22.4 percent from a year earlier. Resales of multi-unit homes are down 2.3 percent to 430,000 in April from 440,000 in the prior month, and down 29.5 percent from April 2022.

A positive for potential homebuyers is that the supply of homes available for sales rose to 2.9 months' worth in April after 2.6 in March, and is above the 2.2 months in April 2022. Part of the reason new inventory is coming on to the market may be that prices are rising again as is typical in the spring months. The median price of an existing home is up 3.6 percent to $388,800 in April from March, but down 1.7 percent from April 2022.

Homes are remaining on the market for an average of 22 days in April, down from 29 days in March, although up from 17 days in April 2022. The report said 73 percent of homes sold in April were on the market for under one month. Although the pace of sales is slower than the exceptionally fast one a year ago, sales remain unusually quick as homebuyers keep a close eye out for units coming on to the market and make offers without delay, especially to capture a dip in mortgage rates.

After March's fall to a 4.440 million annualized rate, existing home sales in April are expected to fall further to a 4.295 million rate.

Existing home sales tally the number of previously constructed homes, condominiums and co-ops in which a sale closed during the month. Existing homes (also known as home resales) account for a larger share of the market than new homes and indicate housing market trends.

This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as home resales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio.

Even though home resales don't always create new output, once the home is sold, it generates revenues for the realtor. It brings a myriad of consumption opportunities for the buyer.

Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, home resales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the existing home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.