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Today’s data showed a decline of 2.5% in April existing home sales. According to analysts at Wells Fargo, the ongoing shortage of homes available for purchase continues to weigh on sales.

Key Quotes:

“After rising the past two months, existing home sales fell 2.5 percent in April to a 5.46 million unit annual pace.”

“While sales fell, demand is not the problem. Homes are selling quickly and prices continue to rise.”

“Stronger job and income growth has bolstered buyer confidence and a rising share of households say they plan to purchase homes in coming months. Higher prices and rising interest rates will test buyers’ resolve.”

“While the months’ supply of homes available for sale rose in April, the absolute level of inventories remains 6.2 percent lower than it was one year ago and months’ supply is also lower than a year ago.”