Existing home sales fell for the fourth consecutive month in May, down 0.9% from April, with a seasonally adjusted annual rate of 5.8 million, according to data from the National Association of Realtors. The last month’s sales decline was slimmer than the previous decline, when existing home sales fell 2.7% from March to April.
At the same time, total existing home sales—which include single-family homes, townhomes, condominiums, and co-ops—rose 44.6% on a year-over year basis.
The median home price for all existing home types rose a record 23.6% YOY in May, up to $350,300 from $283,500. This marks the 111th consecutive month of YOY home price gains since March 2012.
Single-family home sales fell to a seasonally adjusted annual rate in May, down 1% from 5.13 million in April and up 39.2% from one year ago. The median existing single-family home price was $356,600, up 24.4% from May 2020.
“Home sales fell moderately in May and are now approaching pre-pandemic activity,” says Lawrence Yun, NAR 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. Supply is expected to improve, which will give buyers more options and help tamp down record-high asking prices for existing homes.”
Total housing inventory rose 7% month to month, up to 1.23 million units, but remains 20.6% lower than inventory one year ago. Properties typically stayed on the market for an average of 17 days, unchanged from April and down from 26 days in May 2020. First-time buyers were responsible for 31% of sales in May.
Out of the four major U.S. regions, only the Midwest recorded a month-over-month increase in existing home sales at 1.6%. Existing home sales in the Northeast fell 1.4% in May, while existing home sales in the South fell 0.4%, and sales in the West fell 4.1%. (All four regions recorded double-digit home sales gains year over year.)
“As outlined in last week’s NAR/Rosen Consulting Group report, we continue to face a dire shortage of available housing in this country,” says 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.”
