Home Sales Slip, Wholesale Inflation Cooler Than Expected

Home sales slower, builder sentiment weaker, and wholesale inflation slightly cooler than expected. Here are the key takeaways.

·      Existing Home Sales Slip in March

·      Builder Confidence Weaker in April

·      At a Glance: Wholesale Inflation and Unemployment

Existing Home Sales Slip in March

After a rebound in February, existing home sales slowed in March, falling 3.6% according to the National Association of REALTORS® (NAR). At the same time, housing inventory improved, rising 3% from February to 1.36 million homes, which is 2.3% higher than this time last year.

What’s the bottom line? Even with this increase, inventory is still tight compared to historical norms, which continues to put pressure on the market. According to NAR Chief Economist Lawrence Yun, limited supply has helped support home prices and that price growth has added significant value for homeowners over time.

In fact, Yun noted that the typical homeowner has gained about $128,100 in housing wealth over the past six years.

Even modest appreciation can make a difference. For example, a $500,000 home gaining 3% in a year would add about $15,000 in value, highlighting how homeownership can build wealth over time.

Builder Confidence Weaker in April

Homebuilder sentiment fell 4 points to a seven-month low of 34 in April, remaining in contraction territory. Much of this weakness is driven by concerns over rising mortgage rates, geopolitical tensions, and surging construction costs, which are squeezing margins and dampening momentum in the spring housing market. Buyer traffic, along with both current and future sales expectations, declined month over month.

What’s the bottom line? Builders are pulling back as higher costs, elevated rates, and uncertainty continue to weaken demand and outlook.

At a Glance: Wholesale Inflation and Unemployment

Wholesale inflation rose in March but not as much as expected. The headline Producer Price Index (PPI) increased 0.5% for the month and 4% year over year, both below forecasts. Core PPI, which strips out food and energy, came in even softer, rising just 0.1% monthly and 3.8% annually. While inflation remains elevated, these readings came in better than the market feared.

On the labor side, initial jobless claims fell by 11,000 to 207,000. However, continuing claims rose by 31,000 to 1.82 million, indicating that many job seekers are taking longer to find full-time work. Some may also be turning to gig or part-time roles, which aren’t fully reflected in the data.