Existing-home sales decreased for a fourth straight month in May, according to the National Association of Realtors. Regionally, only the Midwest saw a slight increase, up 1.6 percent compared to April 2021 figures.
Per NAR, existing-home sales dropped 0.9 percent to a seasonally adjusted annual rate of 5.80 million in May 2021. Looking at year-over-year changes, May numbers were up 44.6 percent.
Total housing inventory at the end of last month amounted to 1.23 million units—a 7.0 percent increase from April’s inventory. Year-over-year, however, inventory is down 20.6 percent.
“Home sales fell moderately in May and are now approaching pre-pandemic activity,” said Lawrence Yun, NAR’s chief economist. “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 market’s outlook, however, is encouraging,” Yun continued. “Supply is expected to improve, which will give buyers more options and help tamp down record-high asking prices for existing homes.”
First-time buyers made up 31 percent of sales in May, the same as the month prior. Also flat from April 2021, investors or second-home buyers purchased 17 percent of homes in May. NAR also noted that all-cash sales accounted for 23 percent of transactions in May, down from 25 percent in April, yet up from 17 percent in May 2020.