Existing-home sales dip 0.7% while home prices break record
In May, three of the four regions remained largely the same as April of 2024, with the South falling 1.6%, leading to an average decline of 0.7% from last month with a seasonally adjusted annual rate of 4.11 million. At the same time, housing prices soared to break the record, according to a report released by the National Association of Realtors (NAR).
- Northeast: down 4.0%, an annual rate of 480,000, down 4.0% from May 2023
- Midwest: down 1.0% an annual rate of 1,000,000, up 1.0% from May 2023
- South: down 1.6% an annual rate of 1,900,000, down 5.1% from May 2023
- West: down 2.6% an annual rate of 760,000, up 1.3% from May 2023
"Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months," NAR Chief Economist Lawrence Yun said. "Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions."
Home prices reach record high
While existing-home sales remained largely the same across the board, median home prices jumped 5.8% from May of 2023 to reach $419,300, the highest ever recorded. This also marks the eleventh consecutive month of year-over-year price gains. All four U.S. regions showed price gains.
Month | Median existing-home price | Month-over-month | Year-over-year |
$396,100 | Up 1.9% | Down 3.1% | |
$410,200 | Up 3.6% | Down 0.9% | |
$406,700 | Down 0.9% | Up 1.9% | |
$407,100 | Up 0.1% | Up 3.9% | |
$394,300 | Down 3.1% | Up 2.8% | |
$391,800 | Down 0.6% | Up 3.4% | |
$387,600 | Down 1.1% | Up 4.0% | |
$382,600 | Down 1.3% | Up 4.4% | |
$379,100 | Down 0.9% | Up 5.1% | |
$384,500 | Up 1.4% | Up 5.7% | |
$393,500 | Up 2.3% | Up 4.8% | |
$407,600 | Up 3.6% | Up 5.7% | |
May | $419,300 | Up 2.9% | Up 5.8% |
"Home prices reaching new highs are creating a wider divide between those owning properties and those who wish to be first-time buyers," added Yun. "The mortgage payment for a typical home today is more than double that of homes purchased before 2020. Still, first-time buyers in the market understand the long-term benefits of owning."
Inventory continues to rise
Continuing on a positive trend, the inventory of unsold homes grew 6.7% from the previous month to finish out May with 1.28 million units, or the equivalent of 3.7 month's supply.
Who's buying?
According to the report, first-time homebuyers accounted for 31% of buyers in May. This is down from 33% in April, but an increase from 28% in May of 2023. All-cash sales made up 28% of home transactions in May, which is unchanged from last month. This figure is up from 25% in May of 2023.
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