Existing-Home Sales Continued Drop in May

Existing-home sales fell by 9.7% in May to a seasonally adjusted annual rate of 3.91 million, according to the National Association of Realtors (NAR). Sales are significantly lower year-over-year, down 26.6% from May 2019 (5.33 million).

Lawrence Yun, NAR’s chief economist, is optimistic that home sales will rebound as the economy reopens in the upcoming months. “Sales completed in May reflect contract signings in March and April – during the strictest times of the pandemic lockdown and hence the cyclical low point.”

The total housing inventory was 1.5 million, up 6.2% from April and down 18.8% from 1.91 million a year ago. The median home price was $ 284,600, up 2.3% from May 2019. This increase marks the 99th straight month of year-over-year gains.

Distressed sales were 3% of the total, unchanged from last month but up from 2% in May 2019.

Read the NAR release.