Home Sales Rise Slightly in April Despite Economic Uncertainty From Iran War

Sales of existing homes inched up in April, driven by modest gains in affordability that managed to outweigh market uncertainty stemming from the ongoing conflict in the Middle East. 

Existing-home sales rose 0.2% last month from March to a seasonally adjusted annual rate of 4.02 million but remained unchanged year over year, the National Association of Realtors® reported Monday.

Month over month, sales of previously owned homes accelerated in the Midwest and the South, were flat in the Northeast, and declined in the West. Compared to last April, sales rose in the South, were stagnant in the West, and fell in both the Northeast and Midwest.

Condominiums and co-ops led the gains with a 2.7% increase on both a monthly and annual basis. Meanwhile, single-family home sales remained flat month over month and dipped 0.3% compared to a year ago. 

"Despite mixed macroeconomic signals—including a record-high stock market and historically low consumer confidence—home sales were modestly boosted by the continued improvement in housing affordability," says NAR Chief Economist Lawrence Yun. "Mortgage rates are lower from a year ago, and average income growth is outpacing home price gains."

As sales activity rebounded in April, prices followed suit, with the median existing-home price moving up 0.9% year over year to $417,700, setting a new record for the month.

A closer look at regional sales data shows that the West experienced the sharpest decline as sales slid 2.6% from March to an annual rate of 750,000 and the median price slid 1.4% from a year ago, reaching $619,600.

The Midwest led the monthly gains with a 2.2% jump to an annual rate of 950,000, while the South saw a modest 0.5% uptick to 1.87 million—a 2.7% increase over last year. Prices in both regions were up 3.6% and 0.4%, respectively.

Meanwhile, home sales in the inventory-starved Northeast remained flat for the month, though sales there have plummeted 8.2% since April 2025. The median price rose 4.8% from last year to $510,800.

Inventory and affordability

The total inventory of existing homes in April rose 5.8% from March and 1.4% from a year ago, reaching 1.47 million units.

"Even though it's the highest inventory post-Covid, we are not close to the pre-Covid April inventory of 1.83 million," Yun said on a call with reporters.

That equaled a 4.4-month supply of unsold inventory, up from 3.8 months last month and up from 4.0 months a year ago.

"Inventory still remains tight," adds Yun. "Multiple offers, though not as intense as a few years ago, are still occurring. At the same time, days on market are lengthening on average, implying that consumers are taking their time before making decisions."

Housing affordability improved in April across all regions year over year, with the West leading the way (+12.75%), followed by the South (+9.6%), with the Midwest and Northeast trailing behind at +5.9% and +4.7%, respectively.

"If there’s good news here, it is that the dam appears to be cracking a bit on the housing affordability front," says Mark Hamrick, senior economic analyst at Bankrate. "Growth in incomes is outpacing the national rise in home prices. With sales of previously owned homes flat from a year ago, and up modestly on the month, the housing market is essentially marching in place, in contrast to the rise in sales of generally lower-priced new homes."

Realtor.com® Chief Economist Danielle Hale says that looking ahead, there are reasons to be cautiously optimistic for housing in the rest of 2026.

"One reason for caution is that even as the conflict in the Middle East fades, mortgage rates seem likely to remain higher than we originally expected heading into 2026," says Hale. "Nonetheless, we can be optimistic about a home sales pace that continues to hover right around 4 million despite these rate headwinds."

In more positive news, the housing affordability picture is gradually brightening from the previous year, allowing buyers and sellers to move forward with their plans as others are waiting in the wings for conditions to improve further.

"Data on price cuts suggest that in some regions softer upfront pricing has been effective," says Hale. "In the South and West, where asking prices have slipped further, buyers see fewer price cuts than in the prior year, although price cuts in these regions remain more common than they were prior to the pandemic, while the Midwest and the Northeast see the opposite trends." 

Nationwide, the economist says that months supply data from NAR suggests that the U.S. housing market remains relatively balanced, offering buyers a good number of options to choose from relative to the current pace of sales.

Hamrick agrees, saying that the 4.4-month supply means a greater variety for shoppers who until recently have been "essentially fighting over scraps." Yet, he says the housing market is not out of the woods yet.

"The realtors trade group says much more inventory is needed to bring the housing market into better balance," notes the analyst. "Around the nation’s capital, for example, which has seen steep job cuts in the federal sector, the supply of homes for sale isn’t significantly changed.” 

What's more, the steady national picture masks a wide array of local conditions revealed upon closer examination. 

In fact, a report on the new Realtor.com Market Clock shows that buyers and sellers are facing one of the most fragmented housing markets in years.