by Sales also rose .8% from April, marking a modest gain during the height of the spring selling season
WASHINGTON — Year-over-year existing home sales in May declined .7% from May 2024, according to data released Monday by the National Association of Realtors.
This marked their smallest year-over-year decline of the year, thus far, compared with a 1.2% decline in February 2024, a 2.4% decline in March and a 2% decline in April.
They also increased .8% from April to a seasonally adjusted rate of 4.03 million, rising in the Northeast, Midwest and South, but declining in the West.
Year-over-year sales, which declined from 4.06 million in May 2024, rose in the Northeast and Midwest, while declining in the South and West.
The median existing home price also rose 1.3% to $422,800 from $417,200 in May 2024, which the NAR said was a record high for the month of May and the 23rd consecutive month of year-over-year price increases.
This increase also occurred while inventory rose 20.3% to 1.54 million units, from 1.28 million in May 2024. Inventory also was up 6.2% in April. In May, there also was a 4.6-month supply of unsold inventory, up from 3.8 months in May 2024 and up from 4.4 months in April.
Single-family home sales rose to 3.67 million in May, up .3% from May 2024 and up 1.1% from April. The median price for a single-family home was $427,800, up 1.3% from May 2024.
Condominium and co-op sales declined 2.7% to 360,000 units, down 10% from May 2024. The median price was $371,300, up .7% from May 2024.
NAR Chief Economist Lawrence Yun described the sales as relatively subdued and said this were largely because of persistently high mortgage rates. Citing Freddie Mac, the NAR said that the average 30-year fixed-rate mortgage was 6.81% as of June 18, down from 6.85% a week earlier and 6.87% from a year ago.
“Lower interest rates will attract more buyers and sellers to the housing market,” Yun said. “Increasing participation in the housing market will increase the mobility of the workforce and drive economic growth. If mortgage rates decrease in the second half of this year, expect home sales across the country to increase due to strong income growth, healthy inventory and a record-high number of jobs.”
By region, sales activity was as follows:
+ In the Northeast, existing home sales rose 4.2% to 500,000 from May 2024 and 4.2% from April. The median price was $513,300, up 7.1% from May 2024.
+ In the Midwest, sales rose to 990,000, up 1% from May 2024 and up 2.1% from April. The median price was $326,400, up 3.4% from May 2024.
+ In the South, sales declined .5% to 1.84 million from May 2024, but up 1.7% from April. The median price was $367,800, down .7% from May 2024.
+ In the West, sales were down 6.7% to 700,000 from May 2024 and down 5.4% from April. The median price was $367,800, down .7% from May 2024.
Other highlights of the report were as follows:
+ Homes were on the market for 27 days, up from 24 days in May 2024 and down from 29 days in April.
+ About 30% of sales were made to first-time home buyers, down from 31% in May 2024 and down from 34% in April.
+ Some 27% of transactions were cash sales, down from 28% in May 2024 and up from 25% in April. Individual investors, or second-home buyers, who make up many cash sales, accounted for 17% of the transactions, up from 16% in May 2024 and up from 15% in April.
+ 3% of the sales were distressed sales, including foreclosures or short sales, which were up 2% from May 2024 and April.
