Existing Homes Sales Decline for Fourth Consecutive Month in May

The National Association of Realtors® (NAR) is reporting that total existing home sales, which are completed transactions for single-family homes, townhomes, condominiums and co-ops, declined in May for the fourth straight month, down -0.9% below April to a seasonally adjusted rate at 5.80 million homes. Year-over-year sales are up 44.6% (4.01 million May 2020). Total housing inventory at the end of May amounted to 1.23 million units, up 7.0% from April’s inventory and down -20.6% from one year ago (1.55 million). At the end of May, unsold inventory was at a 2.5-month supply at the current sales pace, up slightly from April’s rate of 2.4 months but down year-over-year from May 2020’s rate of 4.6 months. The median existing-home price for all housing types in May was $350,300, up 23.6% from May 2020 ($283,500), as every region registered price increases. This is a record high and marks 111 straight months of year-over-year gains since March 2012.

In a statement prepared for the release of the May existing homes sales report, Lawrence Yun, NAR’s chief economist said, “Home sales fell moderately in May and are now approaching pre-pandemic activity. 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.”