Home prices hit record high in May as sales stall

3 min read

Sharing is caring!


Sales of previously owned homes are sitting at a 30-year low and didn’t move much in May as prices hit a new record and mortgage rates remain high.

So-called existing home sales in May were essentially flat, down 0.7% from April to a seasonally adjusted, annualized rate of 4.11 million units, according to the National Association of Realtors, or NAR. Sales fell 2.8% from May of last year.

This count of closed sales is based on contracts likely signed in March and April. The sluggish sales pace came as rates took a big leap in April.

The average rate on the popular 30-year fixed loan started the month just below 7% and then rose to just over 7.5% by mid-April, before settling back slightly in May, according to Mortgage News Daily. That rate is now right around 7%.

“Home sales refuse to recover,” said Lawrence Yun, chief economist at the NAR. “I thought we would see a recovery this spring. We are not seeing it.”

Homes in the Issaquah Highlands area of Issaquah, Washington, US, on Tuesday, April 16, 2024. 

David Ryder | Bloomberg | Getty Images

Sales were unchanged month to month in all regions except the South, where they fell 1.6%.

The biggest change in May is that the inventory of homes for sale jumped, up 6.7% month to month and 18.5% higher than in May last year. At the current sales pace, there is now a 3.7-month supply. While inventory is gaining, it is still very low given demographics and demand.

“Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months. Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions,” Yun added.

Record prices



Source link

Oval@3x 2

Don’t miss latest news!

Select list(s):

We don’t spam! Read our [link]privacy policy[/link] for more info.

🕶 Relax!

Put your feet up and let us do the hard work for you. Sign up to receive our latest news directly in your inbox.

Select Your Choice:

We’ll never send you spam or share your email address.
Find out more in our Privacy Policy.

🕶 Relax!

Put your feet up and let us do the hard work for you. Sign up to receive our latest news directly in your inbox.

Select Your Choice:

We’ll never send you spam or share your email address.
Find out more in our Privacy Policy.

Sharing is caring!

Read More :-  Federal Trade Commission to sue drug middlemen over prices of medications including insulin, source says

You May Also Like

More From Author