(Kitco News) - Spot gold is coming off its session low and attempting to reclaim $3,300 per ounce after the latest data showed the U.S. housing market declining beyond expectations last month.
Total existing-home sales, including single-family homes, townhomes, condominiums, and co-ops, fell 0.5% to a seasonally adjusted annual rate of 4.00 million in April, the National Association of Realtors (NAR) announced on Thursday.
The data was worse than expected, as the forecast of economists called for a shallower drop to 4.10 million. March’s total was unrevised at 4.02 million units. Year-over-year, sales were down 2.0% from April 2024.
Spot gold bounced off its session low following the 10 am EDT release, and last traded at $3,293.22 for a loss of 0.66% on the day at the time of writing.
“Home sales have been at 75% of normal or pre-pandemic activity for the past three years, even with seven million jobs added to the economy,” said NAR Chief Economist Lawrence Yun in the report. “Pent-up housing demand continues to grow, though not realized. Any meaningful decline in mortgage rates will help release this demand.”
Total housing inventory stood at 1.45 million units at the end of April, up 9% from March and 20.8% from the 1.20 million in April 2024. Unsold inventory now sits at a 4.4-month supply at the current sales pace, up from 4.0 in March and 3.5 months in April 2024.
The median existing-home price for all housing types in April was $414,000, up 1.8% from $406,600 one year ago. The Northeast and Midwest posted price increases, while the South and West registered price decreases.
“At the macro level, we are still in a mild seller's market," Yun said. "But with the highest inventory levels in nearly five years, consumers are in a better situation to negotiate for better deals.”
