Home prices have had the biggest drop since 2012, realtors' report shows

Home prices have had the biggest drop since 2012 while home sales fell in April 2023 for the second month in a row, according to a report from the National Association of Realtors.

The report shows that existing homes in April, which include townhouses and single family homes, dropped 3.4% from March. 

Year-over-year sales dropped 23.2%, down from 5.57 million in April 2022, the report adds.

"Home sales are bouncing back and forth but remain above recent cyclical lows," said NAR Chief Economist Lawrence Yun. "The combination of job gains, limited inventory and fluctuating mortgage rates over the last several months have created an environment of push-pull housing demand."

The four major regions of the U.S. have shown to have monthly and annual drops in sales. However, drops continue to be larger in areas with the highest costs, which have witnessed the biggest run-up in prices over the years.

CNN reports that prices and competition for homes are mixed across the country.

"Roughly half of the country is experiencing price gains," Yun said. "Even in markets with lower prices, primarily the expensive West region, multiple-offer situations have returned in the spring buying season following the calmer winter market. Distressed and forced property sales are virtually nonexistent."