Sales of existing homes fell 1.9 percent to 4.14 million units in April at a seasonally adjusted annual rate after an upward revision to 4.22 million units in March. Sales were also down 1.9 percent compared to 4.22 million units in April 2023. April's sales were just below the consensus of 4.20 million units in the Econoday survey of forecasters.

While the pace of sales remains constrained by lack of supply in the more sought-after categories, potential homebuyers also face continuing price increases and mortgage rates over the 7 percent mark. NAR Chief Economist Lawrence Yun noted that the decrease was due to a"profound effect" from the seasonal adjustment factor that anticipated stronger sales than occurred. He said,"the raw numbers show sales increasing by 7 percent".

Yun said,"Home sales changed little overall, but the upper-end market is experiencing a sizable gain due to more supply coming onto the market." He also said,"Home prices reaching a record high for the month of April is very good news for homeowners. However, the pace of price increases should taper off since more housing inventory is becoming available."

There's a hint in the data that homebuyers are leaving the market for a single-family home and opting for a multi-unit property where prices may be a bit more affordable. Sales of single-family homes fell 2.1 percent in April to 3.74 million units, and were down 1.3 percent compared to 3.79 million units in April 2023. Multi-unit sales were unchanged at 400,000 units in April from March, but down 7.0 percent compared to 430,000 units in the year-ago month.

The supply of homes available for sale rose to 3.5 months' worth in April after 3.2 months in March and higher than 3.0 months in April 2023. The median price of an existing home was up 3.7 percent to $407,600 in April from March, and up 5.7 percent compared to April 2023.

The average of number days a home is listed for sales was down to 26 days in April from 33 days in March, but up from 22 days in April 2023. First-time buyers accounted for 33 percent of all sales in April compared to 32 percent in March and 29 percent in April 2023.

After March's decline from February's 4.38 million annualized rate to 4.19 million that reflected high mortgage rates and high prices, existing home sales in April are expected to hold steady at 4.195 million.

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.