Existing-home sales rose 0.8% in May to a seasonally adjusted annual rate of 4.03 million. Sales fell 0.7% from one year ago. Month-over-month, sales elevated in the Northeast, Midwest and South, but fell in the West.
“The relatively subdued sales are largely due to persistently high mortgage rates. Lower interest rates will attract more buyers and sellers to the housing market,” said NAR Chief Economist Lawrence Yun. “Increasing participation in the housing market will increase the mobility of the workforce and drive economic growth. If mortgage rates decrease in the second half of this year, expect home sales across the country to increase due to strong income growth, healthy inventory, and record-high number of jobs.”
Total housing inventory registered at the end of May was 1.54 million units, up 6.2% from April and 20.3% from one year ago (1.28 million). Unsold inventory sits at a 4.6-month supply at the current sales pace, up from 4.4 months in April and 3.8 months in May 2024.
The median existing-home price for all housing types in May was $422,800, up 1.3% from one year ago ($417,200). The Northeast, Midwest and West posted price increases, while the South registered a price decrease.
Distressed sales, foreclosures and short sales, represented 3% of sales in May, down from 2% in both April and the prior year.
Read the NAR release.
