High mortgage rates and record-high sales prices caused existing home sales to fall for the third straight month in May, according to the National Association of Realtors.
Existing-home sales slipped 0.7% from April to May to a seasonally adjusted annual rate of 4.11 million. Compared with May 2023, sales fell 2.8% nationwide.
In May, there were 1.28 million total housing units for sale, up from 1.08 million year-over-year. At the current sales pace, there is a 3.7-month supply of unsold inventory, according to NAR.
May experienced the highest price for median existing-home price across all housing types ever recorded at $419,300. That is a 5.8% increase from May 2023’s median home price of $396,500.
"Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months," NAR Chief Economist Lawrence Yun stated. "Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions."
