Kevin Sears President | Official website
Existing-home sales in the United States saw a modest increase of 0.8% in May, reaching a seasonally adjusted annual rate of 4.03 million, according to the National Association of REALTORS (NAR). This growth was noted in regions such as the Northeast, Midwest, and South, although sales declined in the West. Year-over-year comparisons showed a 0.7% decrease in overall existing-home sales.
The NAR highlighted that "the relatively subdued sales are largely due to persistently high mortgage rates," as stated by Lawrence Yun, NAR Chief Economist. Yun anticipates that lower interest rates could boost both buyer and seller activity in the housing market later this year.
The total housing inventory for May stood at 1.54 million units, marking a 6.2% increase from April and a significant rise from May 2024's figure of 1.28 million units. This corresponds to a supply of unsold inventory lasting approximately 4.6 months.
Median existing-home prices reached $422,800 in May, reflecting a year-over-year increase of 1.3%. The report noted this as the highest median price recorded for May and part of an ongoing trend of rising prices over the past two years.
In terms of specific property types, single-family home sales increased by 1.1%, while condominium and co-op sales fell by 2.7%. Regional data showed varying trends: the Northeast experienced a notable month-over-month rise in sales by 4.2%, while the West faced a decline of 5.4%.
The REALTORS Confidence Index revealed several insights about market dynamics: properties spent an average of 27 days on the market; first-time buyers constituted 30% of all purchases; cash transactions accounted for 27% of deals; and individual investors or second-home buyers made up 17% of transactions.
As for mortgage rates, Freddie Mac reported an average rate for a 30-year fixed-rate mortgage at 6.81% as of June 18.
The National Association of REALTORS continues to provide detailed analyses through its reports and indexes to assist real estate professionals across various markets.