Sales may be down, but prices continued to climb last month. According to the National Association of Realtors, existing-home sales fell 0.7 percent from April to a seasonally adjusted annual rate of 4.11 million in May. Year-over-year, sales waned 2.8 percent.
Prices, however, have reached a new record high. The median sale price in the U.S. last month was $419,300—an increase of 5.8 percent from one year ago. All four U.S. regions registered price gains.
“Home prices reaching new highs are creating a wider divide between those owning properties and those who wish to be first-time buyers,” said NAR Chief Economist Lawrence Yun. “The mortgage payment for a typical home today is more than double that of homes purchased before 2020. Still, first-time buyers in the market understand the long-term benefits of owning.”
Total housing inventory registered at the end of May was 1.28 million units, up 6.7 percent from April and 18.5% from one year ago. Unsold inventory sits at a 3.7-month supply at the current sales pace, up from 3.5 months in April and 3.1 months in May 2023.
“Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months,” Yun said. “Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions.”
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