Housing Still In Rolling Recession

Pending existing homes dropped 7.7% in April compared to March, the slowest pace since April 2020, i.e., during the pandemic lockdown, according to the National Association of Realtors (chart). This is based on signed contracts. Would-be homebuyers are facing two problems: high home prices and high mortgage rates are depressing affordability, and there is a shortage of existing homes on the market.

There was only a 3.5 months' supply of existing homes on the market during April. The weakness in home sales will continue to weigh on housing-related retail sales (chart).