For the fourth consecutive month, existing-home sales decreased, according to the latest report from the National Association of REALTORS®.
For all existing homes, transactions decreased 0.9% from April to a seasonally adjusted annual rate of 5.80 million in May. Compared to last year, sales are up 44.6%, however.
Single-family home sales decreased by 1% since last month to a seasonally adjusted annual rate of 5.08 million. Condos and co-ops were unchanged from April but up 100% YoY.
Regionally, only one area experienced an increase over last month; the other three saw declines.
By Region:
Midwest
Existing-Home Sales: 1.31 million (+27.2% YoY)
Median Price: $268,500 (+18.1% YoY)
Northeast
Existing-Home Sales: 720,000 (+46.9% YoY)
Median Price: $384,300 (+17.1% YoY)
South
Existing-Home Sales: 2.59 million (+47.2% YoY)
Median Price: $299,400 (+22.6% YoY)
West
Existing-Home Sales: 1.18 million (+61.6% YoY)
Median Price: $505,600 (+24.3% YoY)
What it means:
“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.”
“The appeal of vacation homes has certainly grown during the pandemic, especially among employees permitted to work from home,” Yun said. “As businesses decide new guidelines for remote workers, even allowing permanent remote options in some cases, look for vacation homes to remain a popular option.”
“As outlined in last week’s NAR/Rosen Consulting Group report, we continue to face a dire shortage of available housing in this country,” said NAR President Charlie Oppler. “NAR continues its advocacy efforts to find new, creative and effective ways to increase housing construction and supply. The right policies will provide huge benefits to our nation’s economy, and our work to close this gap will be particularly impactful for lower-income households, households of color and first-time buyers.”
For more information, please visit www.nar.realtor.
