Existing-home sales edged up 0.2% in May compared with April but remained down 20.4% compared with May 2022, according to the National Association of Realtors (NAR).
Sales were mixed among the four major U.S. regions, with the South and West posting improvements and the Northeast and Midwest experiencing pullbacks.
All four regions experienced year-over-year sales declines.
NAR includes single-family homes, townhomes, condominiums and co-ops in its sales data.
“Mortgage rates heavily influence the direction of home sales,” says Lawrence Yun chief economist for NAR, in a statement. “Relatively steady rates have led to several consecutive months of consistent home sales.”
As of the end of May, total housing inventory stood at approximately 1.08 million units, up 3.8% compared with April but down 6.1% compared with May 2022.
That’s about a 3.0-month supply at the current sales pace.
“Available inventory strongly impacts home sales, too,” Yun adds. “Newly constructed homes are selling at a pace reminiscent of pre-pandemic times because of abundant inventory in that sector. However, existing-home sales activity is down sizably due to the current supply being roughly half the level of 2019.”
The median existing-home price for all housing types in May was $396,100, a decline of 3.1% from May 2022.
Prices grew in the Northeast and Midwest but fell in the South and West.
Properties typically remained on the market for 18 days in May, down from 22 days in April but up from 16 days in May 2022.
Seventy-four percent of homes sold in May were on the market for less than a month.
Photo: Breno Assis