US Existing Home Sales Fell 0.9% in May as Surging Prices Push Potential Homebuyers Out of Market
Sales of existing homes declined for the fourth consecutive month in May, as surging prices and low inventory supply pushed some potential homebuyers out of the real estate market.
According to latest data published by the National Association of Realtors, existing home sales fell 0.9% in May to a seasonally adjusted rate of 5.8 million units. However, despite the decline, sales are still up 44.6% year-over-year, when compared to the 4.01 million units that traded hands in May 2020.
“Home sales fell moderately in May and are now approaching pre-pandemic activity,” explained NAR chief economist Lawrence Yun. “Lack of inventory continues to be the overwhelming factor holding back home sales, but falling affordability is simply squeezing some first-time buyers out of the market.”
The median existing-home price for all types of housing rose to a record $350,300, marking an increase of 23.6% from year-ago levels, as every region across the US reporting some form of price increase. In the meantime, total housing inventory stood at 1.23 million units by the end of May, up by 7% from the month prior, while the average duration of homes sitting on the market remained unchanged at 17 days.
Information for this briefing was found via the NAR. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.