The National Association of Realtors is reporting that existing home sales were up 0.2% in May to a seasonally-adjusted annual rate of 4.30 million (down 20.4% year over year). Total housing inventory at the end of May was 1.08 million units, up 3.8% from April but down 6.1% from one year ago. Unsold inventory sits at a 3-month supply at the current sales rate with properties remaining on the market for around 18 days. The median existing-home price for all housing types in May was $396,100, down 3.1% from one year ago. The NAR said sales were mixed among the four major U.S. regions, with the South and West posting improvements and the Northeast and Midwest experiencing pullback.
“Mortgage rates heavily influence the direction of home sales…Relatively steady rates have led to several consecutive months of consistent home sales….Available inventory strongly impacts home sales, too…Newly constructed homes are selling at a pace reminiscent of pre-pandemic times because of abundant inventory in that sector.” Said Lawrence Yun, NAR’s Chief Economist.