Existing-home sales wilt in May
For the second straight month, existing-home sales took a step back.
Total existing-home sales fell 0.4% in May to a seasonally adjusted rate of 5.43 million from the downwardly revised rate of 5.45 million in April, the National Association of Realtors reported today.
With last month’s decline, sales are now 3% below a year ago and have fallen year-over-year for three straight months. A lack of housing supply continues to tighten its grip on sales.
“Closings were down in a majority of the country last month and declined on an annual basis in each major region,” said Lawrence Yun, chief economist of the NAR. “Incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market.”
Single-family home sales declined 0.6% to a seasonally adjusted annual rate of 4.81 million in May from 4.84 million in April and are 3% below the 4.96 million sales pace a year ago. The median existing single-family home price was $267,500 in May, up 5.2% from May 2017.
Existing condominium and co-op sales increased 1.6% to a seasonally adjusted annual rate of 620,000 units in May but are still 3.1% below a year ago. The median existing condo price was $244,100 in May, which is 2.5% above a year ago.
The median existing-home price for all housing types in May was $264,800, an all-time high and up 4.9% from May 2017 ($252,500). May’s price increase marks the 75th straight month of year-over-year gains.
May existing-home sales in the Northeast increased 4.6% to an annual rate of 680,000, and but are 11.7% below a year ago. The median price in the Northeast was $275,900, which is down 1.8% from May 2017. In the Midwest, existing-home sales declined 2.3% to an annual rate of 1.26 million in May and are now 2.3% below a year ago while the median price increased 4.2% to $209,900.
Existing-home sales in the South fell 0.4% to an annual rate of 2.32 million in May and are unchanged from a year ago. The median price increased 4.5% to $233,100. Sales in the West decreased 0.8% to an annual rate of 1.17 million in May and are 4.1% below a year ago. The median price in the West was $395,800, up 7.2% from May 2017.
Total housing inventory at the end of May climbed 2.8% to 1.85 million existing homes available for sale but is still 6.1% than the 1.97 million available units a year ago. Inventory has fallen year-over-year for 36 consecutive months with unsold inventory now at a 4.1-month supply.
"Inventory coming onto the market during this year’s spring buying season — as evidenced again by last month’s weak reading — was not even close to being enough to satisfy demand,” Yun said. “That is why home prices keep outpacing incomes and listings are going under contract in less than a month — and much faster — in many parts of the country.”
First-time buyers were 31% of sales in May, which is down from 33% both last month and a year ago.
“The abrupt hike in mortgage rates this spring, along with price appreciation and competition being the strongest in the entry-level part of the market, is why first-time buyers are not as active as they should be and their participation remains below its historical average,” Yun said.
Total existing-home sales fell 0.4% in May to a seasonally adjusted rate of 5.43 million from the downwardly revised rate of 5.45 million in April, the National Association of Realtors reported today.
With last month’s decline, sales are now 3% below a year ago and have fallen year-over-year for three straight months. A lack of housing supply continues to tighten its grip on sales.
“Closings were down in a majority of the country last month and declined on an annual basis in each major region,” said Lawrence Yun, chief economist of the NAR. “Incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market.”
Single-family home sales declined 0.6% to a seasonally adjusted annual rate of 4.81 million in May from 4.84 million in April and are 3% below the 4.96 million sales pace a year ago. The median existing single-family home price was $267,500 in May, up 5.2% from May 2017.
Existing condominium and co-op sales increased 1.6% to a seasonally adjusted annual rate of 620,000 units in May but are still 3.1% below a year ago. The median existing condo price was $244,100 in May, which is 2.5% above a year ago.
The median existing-home price for all housing types in May was $264,800, an all-time high and up 4.9% from May 2017 ($252,500). May’s price increase marks the 75th straight month of year-over-year gains.
May existing-home sales in the Northeast increased 4.6% to an annual rate of 680,000, and but are 11.7% below a year ago. The median price in the Northeast was $275,900, which is down 1.8% from May 2017. In the Midwest, existing-home sales declined 2.3% to an annual rate of 1.26 million in May and are now 2.3% below a year ago while the median price increased 4.2% to $209,900.
Existing-home sales in the South fell 0.4% to an annual rate of 2.32 million in May and are unchanged from a year ago. The median price increased 4.5% to $233,100. Sales in the West decreased 0.8% to an annual rate of 1.17 million in May and are 4.1% below a year ago. The median price in the West was $395,800, up 7.2% from May 2017.
Total housing inventory at the end of May climbed 2.8% to 1.85 million existing homes available for sale but is still 6.1% than the 1.97 million available units a year ago. Inventory has fallen year-over-year for 36 consecutive months with unsold inventory now at a 4.1-month supply.
"Inventory coming onto the market during this year’s spring buying season — as evidenced again by last month’s weak reading — was not even close to being enough to satisfy demand,” Yun said. “That is why home prices keep outpacing incomes and listings are going under contract in less than a month — and much faster — in many parts of the country.”
First-time buyers were 31% of sales in May, which is down from 33% both last month and a year ago.
“The abrupt hike in mortgage rates this spring, along with price appreciation and competition being the strongest in the entry-level part of the market, is why first-time buyers are not as active as they should be and their participation remains below its historical average,” Yun said.