Existing-home sales rebound slightly in May
After a significant drop-off in April, existing-home sales picked up the pace slightly in May with an increase of 1.1%.
Total existing-home sales reached a seasonally adjusted annual rate of 5.62 million, compared to a downwardly revised 5.56 million in April. This is also 2.7% above last year.
Single-family home sales increased 1.0% to a seasonally adjusted annual rate of 4.98 million in May from 4.93 million in April, up 2.7% from last year.
Additionally, low inventory levels helped propel the median sales price to a new high while pushing down the median days a home is on the market to a new low, according to the National Association of Realtors.
"The job market in most of the country is healthy and the recent downward trend in mortgage rates continues to keep buyer interest at a robust level," said Lawrence Yun, NAR chief economist. "Those able to close on a home last month are probably feeling both happy and relieved. Listings in the affordable price range are scarce, homes are coming off the market at an extremely fast pace and the prevalence of multiple offers in some markets are pushing prices higher."
The median existing-home price for all housing types in May was $252,800, surpassing last June ($247,600) as the new peak median sales price.
The median existing single-family home price was $254,600 in May, up 6.0% year-over-year.
Total housing inventory rose 2.1% to 1.96 million existing homes available for sale, but is still 8.4% lower than a year ago, with unsold inventory at a 4.2-month supply at the current sales pace.
"Home prices keep chugging along at a pace that is not sustainable in the long run," Yun added. "Current demand levels indicate sales should be stronger, but it's clear some would-be buyers are having to delay or postpone their home search because low supply is leading to worsening affordability conditions."
Regionally, every major region except for the Midwest (down 5.9%) saw an increase. The Northeast saw the biggest improvement, with an increase of 6.8%.