Existing-home sales were at a seasonally adjusted annual rate of 4.03 million in May, an 0.8% increase compared with April but down 0.7% compared with May 2024, according to the National Association of Realtors (NAR).
High home prices and higher mortgage rates in the 6.7%-6.9% range continue to be the main culprits in the slowdown.
The sluggish pace in May comes despite a 6.2% month-over-month increase in unsold inventory, to 1.54 million units.
Year-over-year, inventory is up 20.3%.
The median existing-home sales price in May was $422,800, up 1.3% from one year ago when it was $417,200.
May marked the 23rd consecutive month of year-over-year price increases.
“The relatively subdued sales are largely due to persistently high mortgage rates,” says Lawrence Yun, chief economist for NAR, in a statement. “Lower interest rates will attract more buyers and sellers to the housing market. 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 a record-high number of jobs.”
Regionally, and month-over-month, existing home sales increased 4.2% Northeast, 2.1% in the Midwest and 1.7% in the South, but decreased 5.4% in the West.
Photo: Dillon Kydd