Sales of previously owned homes experienced a slight increase of 0.8% in May, reaching a seasonally adjusted annualized rate of 4.03 million units, according to the National Association of Realtors (NAR). Analysts had expected a 1% decline, although sales were still 0.7% lower than in May of the previous year. The Northeast saw the strongest month-to-month growth, up 4.2%, while the Midwest and South also reported gains. However, the West—known for its higher prices—witnessed a 5.4% decline in sales.
This data reflects home closings likely resulting from contracts signed in March and April, a period when mortgage rates were stable before rising above 7% in April. NAR’s chief economist, Lawrence Yun, attributed subdued sales to persistently high mortgage rates, suggesting that a decrease in rates could invigorate the market later this year alongside strong income growth and healthy inventory levels.
An increase in the housing supply likely contributed to the slight sales uptick, with available homes rising over 20% from last year to 1.54 million units, translating to a 4.6-month supply. The median price of existing homes in May peaked at $422,800, a record for the month, reflecting ongoing pressure from demand outpacing supply. Notably, 28% of homes sold above listing price, a marked rise from the previous month but below last year’s figures.
High-end market sales showed mixed trends, with strong supply but decreased sales in the $1 million-plus range. Homes are taking longer to sell now, averaging 27 days, while the proportion of first-time buyers remains low at 30%, highlighting ongoing challenges in the housing market.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
