May 19, 2011

Economics Group

Mark Vitner, Senior Economist

mark.vitner@wellsfargo.com ● (704) 383-5635
Anika R. Khan, Economist
anika.khan@wellsfargo.com ● (704) 715-0575

Existing Home Sales Slide in April

Existing home sales eased 0.8 percent in April to a 5.05 million-unit annual pace. Sales slid in most regions of
the country, except for the Midwest, which saw a 5.7 percent gain on the month. Inventories increased.

Existing Home Sales Continue to Struggle
 Sales of existing homes fell 0.8 percent in April, with
single-family sales declining 0.5 percent and sales of
condominiums and co-ops falling 3.1 percent. Poor weather
may be behind some of the decline.
 Tighter underwriting standards, tougher appraisals and a
slowdown in distressed sales also likely cut April’s sales figures.
Distressed sales accounted for 37 percent of sales in April.
Rising Inventories Will Keep Pressure on Prices
 The inventory of existing homes rose 9.9 percent in April, which
helped pull the month’s supply figure back up to 9.2 months.
Most of that increase was in single-family homes.
 Rising inventories and the mountain of properties in the
foreclosure pipeline continue to put downward pressure on
prices. The median price of an existing home fell 5.0 percent
from last April to $163,700.

Existing Home Resales Inventory of Existing Homes for Sale

Seasonally Adjusted Annual Rate - In Millions Existing Homes for Sale at End of Month, In Thousands
7.5 7.5 5,000 5,000

7.0 7.0 4,500 4,500

6.5 6.5
4,000 4,000

6.0 6.0
3,500 3,500

5.5 5.5
3,000 3,000
5.0 5.0

2,500 2,500
4.5 4.5

4.0 4.0 2,000 2,000

Existing Home Sales: Apr @ 5.05 Million Total Inventory: Apr @ 3,870
3.5 3.5 1,500 1,500
1999 2001 2003 2005 2007 2009 2011 1999 2001 2003 2005 2007 2009 2011

U.S. Distressed Home Sales Existing Single-Family Home Prices

Percent of Total Sales In Thousands
55% 55% $280 $280

50% 50%

45% 45%
$240 $240
40% 40%

35% 35%

30% 30% $200 $200

25% 25%

20% 20%
$160 $160
15% 15%
Average Sale Price: Apr @ $214,600
10% 10%
Total Distressed: Apr @ 37.0% Median Sale Price: Apr @ $163,200
5% 5% $120 $120
Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 00 01 02 03 04 05 06 07 08 09 10 11

Source: National Association of Realtors and Wells Fargo Securities, LLC

Wells Fargo Securities, LLC Economics Group

Diane Schumaker-Krieg Head of Research (704) 715-8437 diane.schumaker@wellsfargo.com

& Economics (212) 214-5070

Paul Jeanne Associate Director of (443) 263-6534 paul.jeanne@wellsfargo.com

Research & Economics
John E. Silvia, Ph.D. Chief Economist (704) 374-7034 john.silvia@wellsfargo.com
Mark Vitner Senior Economist (704) 383-5635 mark.vitner@wellsfargo.com
Jay Bryson, Ph.D. Global Economist (704) 383-3518 jay.bryson@wellsfargo.com
Scott Anderson, Ph.D. Senior Economist (612) 667-9281 scott.a.anderson@wellsfargo.com
Eugenio Aleman, Ph.D. Senior Economist (704) 715-0314 eugenio.j.aleman@wellsfargo.com
Sam Bullard Senior Economist (704) 383-7372 sam.bullard@wellsfargo.com
Anika Khan Economist (704) 715-0575 anika.khan@wellsfargo.com
Azhar Iqbal Econometrician (704) 383-6805 azhar.iqbal@wellsfargo.com
Ed Kashmarek Economist (612) 667-0479 ed.kashmarek@wellsfargo.com
Tim Quinlan Economist (704) 374-4407 tim.quinlan@wellsfargo.com
Michael A. Brown Economist (704) 715-0569 michael.a.brown@wellsfargo.com
Tyler B. Kruse Economic Analyst (704) 715-1030 tyler.kruse@wellsfargo.com
Joe Seydl Economic Analyst (704) 715-1488 joseph.seydl@wellsfargo.com
Sarah Watt Economic Analyst (704) 374-7142 sarah.watt@wellsfargo.com

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