Existing-home sales rebound in May
Existing-home sales increased for the first time in two months and rebounded in May.
Total existing-home sales, including single-family homes, townhomes, condominiums and co-ops, rose 2.5% from April to a seasonally adjusted annual rate of 5.34 million in May, the National Association of Realtors reported.
Total sales are down 1.1% from a year ago (5.40 million in May 2018), however.
Existing single-family home sales sat at a seasonally adjusted annual rate of 4.75 million in May, up from 4.63 million in April and down 0.8% from 4.79 million a year ago. The median existing single-family home price was $280,200 in April, up 4.6% from May 2018.
Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 590,000 units in May, up 1.7% from the prior month and down 3.3% from a year ago. The median existing condo price was $257,100 in May, which is up 5.4% from a year ago.
The median existing-home price for all housing types in May was $277,700, up 4.8% from May 2018 ($265,100). May’s price increase marks the 87th straight month of year-over-year gains.
Total housing inventory at the end of May increased to 1.92 million, up from 1.83 million existing homes available for sale in April and a 2.7% increase from 1.87 million a year ago.
Unsold inventory is at a 4.3-month supply at the current sales pace, up from both the 4.2-month supply in April and from 4.2 months in May 2018.
Lawrence Yun, NAR chief economist, said the sales increase in May points to consumers who are eager to take advantage of favorable buying conditions.
“The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding,” Yun said.
But as sales and inventory are up, supply numbers still remain near historic lows, which has a direct effect on price, according to Yun. “Solid demand along with inadequate inventory of affordable homes have pushed the median home price to a new record high,” he said.
Properties remained on the market for an average of 26 days in May, up from 24 days in April and equal to the 26 days in May of 2018. About 53% percent of homes sold in May were on the market for less than a month.
Yun said housing and property is selling so quickly, there is an even greater need for new construction. “More new homes need to be built,” he said. “Otherwise, we risk worsening the housing shortage, and an increasingly number of middle-class families will be unable to achieve homeownership.”
By region, May existing-home sale numbers in the Northeast increased 4.7% to an annual rate of 670,000, about equal to a year ago. The median price in the Northeast was $304,100, up 6.6% from May 2018.
In the Midwest, existing-home sales jumped 3.4% to an annual rate of 1.22 million, which is 3.9% below May 2018 levels. The median price in the Midwest was $220,500, an increase of 5.6% from a year ago.
Existing-home sales in the South grew 1.8% to an annual rate of 2.32 million in May, up 1.3% from a year ago. The median price in the South was $241,400, up 3.6% from a year ago.
Sales in the West rose 1.8% to an annual rate of 1.13 million in May, 3.4% below a year ago. The median price in the West was $409,100, up 4.1% from May 2018.
The hottest metro areas in May were Rochester, N.Y.; Fort Wayne, Ind.; Lafayette-West Lafayette, Ind.; Boston-Cambridge-Newton, Mass.; and Midland, Texas.
First-time buyers were responsible for 32% of sales in May, unchanged from the 32% the month prior and up from the 31% recorded in May 2018.
All-cash sales accounted for 19% of transactions in May, down from April and a year ago (20% and 21%, respectively).
Distressed sales, including foreclosures and short sales, represented just 2% of sales in May, down from 3% in April and 3% in May 2018.
Total existing-home sales, including single-family homes, townhomes, condominiums and co-ops, rose 2.5% from April to a seasonally adjusted annual rate of 5.34 million in May, the National Association of Realtors reported.
Total sales are down 1.1% from a year ago (5.40 million in May 2018), however.
Existing single-family home sales sat at a seasonally adjusted annual rate of 4.75 million in May, up from 4.63 million in April and down 0.8% from 4.79 million a year ago. The median existing single-family home price was $280,200 in April, up 4.6% from May 2018.
Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 590,000 units in May, up 1.7% from the prior month and down 3.3% from a year ago. The median existing condo price was $257,100 in May, which is up 5.4% from a year ago.
The median existing-home price for all housing types in May was $277,700, up 4.8% from May 2018 ($265,100). May’s price increase marks the 87th straight month of year-over-year gains.
Total housing inventory at the end of May increased to 1.92 million, up from 1.83 million existing homes available for sale in April and a 2.7% increase from 1.87 million a year ago.
Unsold inventory is at a 4.3-month supply at the current sales pace, up from both the 4.2-month supply in April and from 4.2 months in May 2018.
Lawrence Yun, NAR chief economist, said the sales increase in May points to consumers who are eager to take advantage of favorable buying conditions.
“The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding,” Yun said.
But as sales and inventory are up, supply numbers still remain near historic lows, which has a direct effect on price, according to Yun. “Solid demand along with inadequate inventory of affordable homes have pushed the median home price to a new record high,” he said.
Properties remained on the market for an average of 26 days in May, up from 24 days in April and equal to the 26 days in May of 2018. About 53% percent of homes sold in May were on the market for less than a month.
Yun said housing and property is selling so quickly, there is an even greater need for new construction. “More new homes need to be built,” he said. “Otherwise, we risk worsening the housing shortage, and an increasingly number of middle-class families will be unable to achieve homeownership.”
By region, May existing-home sale numbers in the Northeast increased 4.7% to an annual rate of 670,000, about equal to a year ago. The median price in the Northeast was $304,100, up 6.6% from May 2018.
In the Midwest, existing-home sales jumped 3.4% to an annual rate of 1.22 million, which is 3.9% below May 2018 levels. The median price in the Midwest was $220,500, an increase of 5.6% from a year ago.
Existing-home sales in the South grew 1.8% to an annual rate of 2.32 million in May, up 1.3% from a year ago. The median price in the South was $241,400, up 3.6% from a year ago.
Sales in the West rose 1.8% to an annual rate of 1.13 million in May, 3.4% below a year ago. The median price in the West was $409,100, up 4.1% from May 2018.
The hottest metro areas in May were Rochester, N.Y.; Fort Wayne, Ind.; Lafayette-West Lafayette, Ind.; Boston-Cambridge-Newton, Mass.; and Midland, Texas.
First-time buyers were responsible for 32% of sales in May, unchanged from the 32% the month prior and up from the 31% recorded in May 2018.
All-cash sales accounted for 19% of transactions in May, down from April and a year ago (20% and 21%, respectively).
Distressed sales, including foreclosures and short sales, represented just 2% of sales in May, down from 3% in April and 3% in May 2018.