U.S. existing-home sales rose 4.1% in April 2026 to a seasonally adjusted annual rate of 4.27 million units, the National Association of Realtors reported on Friday, marking the third consecutive monthly gain and the first sustained recovery the housing market has produced in 18 months. The April figure exceeded the consensus forecast of 4.18 million from a Reuters survey of 28 economists.
The rise was supported by easing mortgage rates and a modest improvement in inventory. The 30-year fixed mortgage rate averaged 6.32% during April, down from 6.47% in March and a peak of 6.84% in November 2025. Active listings reached 1.18 million units at the end of April, the highest April reading since 2019, although the figure remains below the long-term seasonal average.
Regional breakdown
All four U.S. regions reported month-over-month gains in April. The Midwest led with a 5.7% rise, followed by the South at 4.4%, the West at 3.6%, and the Northeast at 2.8%. Year-over-year, sales were 6.2% higher than April 2025, with the South posting the largest gain at 8.1% and the Northeast lagging at 2.4%.
The median existing-home sales price was $403,400 in April, up 2.4% from a year earlier. Median price appreciation has slowed materially compared with the 2021–2023 cycle but remains positive across all four regions, with the South again leading at 3.1% year-over-year and the West showing the smallest increase at 1.4%.
Inventory and days-on-market
Total housing inventory ended April at 1.18 million units, up 7.8% from March and up 14.2% year-over-year. Unsold inventory now sits at a 3.3-month supply at the current sales pace, compared with 3.0 months in March. The 4-to-6 month range is generally considered balanced; April 2026 remains in seller-favoured territory but is closer to balance than at any point since 2023.
Properties typically remained on the market for 32 days in April, down from 36 days in March, with 47% of homes sold above the asking price. The 47% figure is the highest above-asking share since June 2025 and indicates that the slowing of price appreciation has not yet weakened buyer competition in the most desirable submarkets.
NAR commentary
Lawrence Yun, NAR Chief Economist, said in the release that "the combination of easing mortgage rates, slowly recovering inventory, and improving buyer confidence has produced the first genuine momentum we have seen in this market in over a year." Yun added that the April data "supports our forecast of an annualised sales pace returning to 4.5 million units by year-end 2026."
The NAR upgraded its 2026 full-year sales forecast to 4.4 million units, up from 4.25 million in its prior March projection. The forecast assumes the 30-year mortgage rate continues to decline gradually through year-end, reaching 6.0% by December 2026.
First-time buyers and investor share
First-time buyers accounted for 27% of existing-home sales in April, down from 31% in March but in line with the 26% reading from April 2025. The first-time buyer share remains well below the long-term historical average of 38%, reflecting the sustained affordability pressure on entry-level buyers.
Individual investors and second-home buyers accounted for 18% of April purchases, up from 16% in March. The investor share has been climbing modestly through 2026, with rental yield calculations becoming more attractive as some metropolitan rental markets have stabilised after a 2024 correction.
Cash sales represented 28% of April transactions, unchanged from March. The cash-sale share has remained elevated above its pre-2020 baseline of approximately 20%, supported by both investor demand and the larger share of mortgage-free downsizers in the existing-home seller pool.
Property type breakdown
Single-family home sales rose 4.3% in April to a seasonally adjusted annual rate of 3.85 million, with the median price at $407,800. Condominium and co-op sales rose 2.4% to a seasonally adjusted annual rate of 420,000 units, with the median price at $362,500. Single-family inventory grew faster than condominium inventory in April, reflecting both new listings activity and the continued correction in some apartment-heavy metropolitan markets.
Mortgage rate outlook
The Mortgage Bankers Association, in its weekly applications survey released Wednesday, reported that purchase mortgage applications rose 6.3% week-over-week in the latest reading, the seventh consecutive weekly gain. MBA Chief Economist Joel Kan said the trend "indicates that the recovery is not solely driven by closings on contracts signed earlier in the year — there is genuine new buyer activity in the market."
The Federal Reserve, in the FOMC statement released following its April 30 meeting, kept the federal funds rate target range at 4.25%–4.50% but signalled that rate cuts could resume in the second half of 2026 if inflation data continues to track in line with the Committee's expectations. Markets are currently pricing two 25-basis-point cuts before year-end, which would support continued easing in mortgage rates if realised.
Market reaction
Homebuilder stocks rose modestly on Friday following the NAR release. The S&P 500 Homebuilders Select Industry Index closed up 1.4% on the day. D.R. Horton, the largest U.S. homebuilder by closings, gained 1.8%. Lennar gained 1.6%. KB Home, which has greater exposure to first-time buyer markets, gained 2.4%.
Real estate investment trust stocks were mixed. The Vanguard Real Estate ETF closed essentially flat on the day, with single-family rental REITs outperforming office and retail REITs. Mortgage REIT performance was modestly positive on the prospect of stabilising mortgage spreads.
What to watch in May
The May existing-home sales report, scheduled for release June 19, will provide the next confirmation point on whether the April rebound represents a sustainable recovery or a single-month rebound from depressed early-2026 levels. NAR's pending home sales index — a leading indicator that measures contracts signed but not yet closed — rose 3.4% in March, suggesting May closings will continue the upward trajectory.
The new home sales data, separately reported by the Census Bureau, will provide additional evidence of buyer activity. The April new home sales report is scheduled for release on May 23, with consensus expecting a modest gain consistent with the existing-home strength.