U.S. Population Up 100 Million Since 1978, Same Number Of Homes — How Rising Prices Keep Market Stagnant

The U.S. population has grown by over 100 million since 1978, but existing home sales have remained stagnant.

In April 1978, 4.09 million existing homes were sold in the U.S., which increased to just 4.14 million for the same month this year, according to the National Association of Realtors (NAR).

Meanwhile, the U.S. population in 1978 was 223 million. It has grown to 341 million this year.

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Housing prices have increased so much that buyers and sellers sit on the sidelines. Homeowners who would like to sell aren't moving because they have low mortgage rates and don't want to change them for higher ones.

Existing home sales in April were down 1.9% from March and 1.9% from a year ago.

In the Northeast, existing home sales were down 4% from April 2023. The median price was up 8.5% from last year to $458,500.

Existing home sales dropped 1% in the Midwest compared to a year ago, but the median price was up 6% to $303,600.

In the South, existing home sales dropped 3.1% from a year ago, with the median price of $366,200 up 3.7% from last year.

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Existing home sales in the West increased 1.3% from a year ago. The median price was up 9.3% to $629,600.

"Home sales changed little overall, but the upper-end market is experiencing a sizable gain due to more supply coming onto the market," said NAR Chief Economist Lawrence Yun.

First-time buyers accounted for 33% of sales in April, up from 32% in March and 29% in April 2023. All-cash transactions remained the same compared to March and a year ago at 28%. Investors and second-home buyers bought 16% of homes in April, up from 15% in March but down from 17% in April last year.

The housing inventory at the end of April was 1.21 units, up 9% from March and 16.3% from a year ago. The inventory and sales of homes priced at $1 million or more increased by 34% and 40%, respectively, from a year ago.

The median price for all types of existing homes in April was $407,600, an increase of 5.7% from a year ago.

"Home prices reaching a record high for the month of April is very good news for homeowners," said Yun. "However, the pace of price increases should taper off since more housing inventory is becoming available."

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