Existing home sales in US drops by 0.7 percent in May
Date
6/23/2024 5:34:39 AM
(MENAFN) In May, existing home sales in the United States saw a modest decline of 0.7 percent, according to the National Association of Realtors (NAR). The seasonally adjusted annual rate of existing home sales fell to 4.11 million units. While this figure was slightly above the anticipated 4.08 million, it represented a decrease from April's rate of 4.14 million, marking a monthly decline of 1.9 percent.
A notable aspect of the housing market in May was the continued surge in home prices. The median sales price for existing homes rose sharply by 5.8 percent year-on-year, reaching a record high of USD419,300. This marks the eleventh consecutive month of year-over-year price increases, underscoring the persistent trend of price escalation in the housing sector.
Lawrence Yun, the Chief Economist at NAR, highlighted the widening gap between current homeowners and potential first-time buyers due to these record-high prices. He pointed out that the mortgage payments for typical homes today are more than double those of homes purchased before 2020, emphasizing the affordability challenges in the market.
On an annual basis, existing home sales were down by 2.8 percent compared to May 2023, when 4.23 million units were sold. Yun expressed optimism that increasing inventory levels could alleviate some of the pressure on home prices and stimulate more robust sales activity in the coming months. He suggested that greater housing supply would offer prospective buyers more choices and potentially moderate the pace of price appreciation, thereby improving overall market conditions for consumers considering home purchases.
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