WASHINGTON (June 21, 2024) – Existing home sales fell slightly in May as the median sales price reached a record high, according to the National Association of REALTORS®. Across the four major U.S. regions, sales declined month-over-month in the South, but were unchanged in the Northeast, Midwest and West. Year over year, sales increased in the Midwest but declined in the Northeast, South and West.
Total Existing Home Sales1 – closed transactions that include single-family homes, townhouses, condominiums and cooperatives – fell 0.7% from April to a seasonally adjusted annual rate of 4.11 million in May. Year-over-year, sales decreased by 2.8% (compared to 4.23 million in May 2023).
“Ultimately, more inventory will help boost home sales and keep rising house prices in check in the months ahead,” said Lawrence Yun, NAR chief economist. “The increased housing supply is good news for consumers who want to see more properties before making a purchasing decision.”
Total housing inventory2 recorded at the end of May amounted to 1.28 million units, up 6.7% from April and 18.5% from a year ago (1.08 million). Unsold inventory represents a reserve of 3.7 months at the current sales rate, compared to 3.5 months in April and 3.1 months in May 2023.
The median price of an existing home3 for all housing types in May was $419,300, the highest price on record and an increase of 5.8% from a year ago ($396,500). All four American regions recorded price increases.
“Home prices reaching new highs are creating a wider divide between those who own properties and those who want to become first-time home buyers,” Yun added. “The mortgage payment on a typical home today is more than double that of homes purchased before 2020. Yet first-time buyers in the market understand the long-term benefits of homeownership.
Real Estate Agent Confidence Index®
According to the monthly REALTORS® Confidence Index, properties generally remained on the market for 24 days in May, down from 26 days in April, but up from 18 days in May 2023.
First-time buyers accounted for 31% of sales in May, up from 33% in April but up from 28% in May 2023. NAR’s 2023 Profile of Home Buyers and Sellers – released in November 20234 – found that the annual share of first-time buyers was 32%.
Cash sales accounted for 28% of transactions in May, unchanged from April and up from 25% a year ago.
Individual investors or second home buyers, who make up many cash sales, purchased 16% of homes in May, the same as April and up from 15% in May 2023.
Distressed sales5 – foreclosures and short sales – accounted for 2% of sales in May, unchanged from last month and the year before.
Mortgage Rates
According to Freddie Mac, the average 30-year fixed-rate mortgage rate was 6.87% as of June 20. That’s down from 6.95% the previous week, but up from 6.67% a year ago.
Sales of single-family homes and condos/co-ops
Single-family home sales declined at a seasonally adjusted annual rate of 3.71 million in May, down 0.8% from April’s 3.74 million and down 2.1% from a year earlier. . The median price of existing single-family homes was $424,500 in May, up 5.7% from May 2023.
At a seasonally adjusted annual rate of 400,000 units in May, sales of existing condos and cooperatives were unchanged from last month and down 9.1% from a year ago (440,000 units). The median price of existing condos was $371,300 in May, up 5.1% from the previous year ($353,300).
Regional distribution
Existing home sales in the Northeast in May were unchanged from April at an annual rate of 480,000, down 4% from May 2023. The median price in the Northeast was $479,200, up 9.2% from the previous year.
In the Midwest, existing home sales were unchanged from a month ago, at an annual pace of 1 million in May, up 1% from a year ago. The median price in the Midwest was $317,100, up 6.4% from May 2023.
Existing home sales in the South fell 1.6% from April to an annual rate of 1.87 million in May, down 5.1% from a year earlier. The median price in the South was $374,300, up 3.6% from last year.
In the West, existing home sales in May were on par with April at an annual rate of 760,000, down 1.3% from the previous year. The median price in the West was $632,900, up 5.5% from May 2023.
About the National Association of Realtors®
The National Association of REALTORS® is America’s largest trade association, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict code of ethics.
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For local information, please contact your local Association of REALTORS® for local Multiple Listing Service (MLS) data. Local MLS data is the most accurate source of sales and price information in specific areas, although there may be differences in reporting methodology.
NOTE: NAR’s May Pending Home Sales Index is scheduled for release on June 27, and the June Existing Home Sales Index will be released on July 23. Post times are 10 a.m. Eastern Time.
1 Existing home sales, which include single-family homes, townhomes, condominiums and cooperatives, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLS are not reflected in the monthly series. NAR periodically evaluates home sales using other sources to assess overall home sales trends, including sales not reported by MLSs.
Existing home sales, based on closings, differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions during the same month. Additionally, existing home sales, which represent more than 90% of total home sales, are based on a much larger data sample (approximately 40% of multiple listing service data each month) and are generally not not subject to significant variations from the previous month. revisions.
The annual rate for a given month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to account for seasonal variations in resale activity. For example, home sales volume is normally higher in summer than in winter, primarily due to climate differences and family purchasing habits. However, seasonal factors cannot compensate for abnormal weather conditions.
Single-family data collection began monthly in 1968, while condominium data collection began quarterly in 1981; the series were combined in 1999, when monthly collection of condominium data began. Before this period, single-family homes accounted for more than nine out of ten purchases. Historical comparisons of total home sales prior to 1999 are based on monthly sales of single-family homes, combined with the corresponding quarterly sales rate for condominiums.
2 Data on total inventory and monthly supply are available through 1999, while single-family home inventory and monthly supply are available since 1982 (prior to 1999, single-family home sales accounted for over 90 percent). transactions and co-ownerships were only measured on a quarterly basis). base).
3 The median price is where half are sold at a higher price and half at a lower price; Median prices are more representative of market conditions than average prices, which are biased upward by a relatively small share of high-end transactions. The only valid comparisons for median prices are with the same period a year earlier, due to the seasonal nature of purchasing habits. Monthly comparisons do not compensate for seasonal changes, especially in the timing of families’ purchasing habits. Changes in sales mix can distort median price data. Median and one-year average prices are sometimes revised through an automated process if additional data is received.
The national median price for condos/co-ops is often higher than the median price for single-family homes because condos are concentrated in the most expensive housing markets. However, within a given area, single-family homes typically sell for more than condos, as shown in NAR’s quarterly metro area price reports.
4 The survey results represent owner-occupiers and differ from the separately reported monthly results of NAR’s REALTORS® Confidence Index, which includes all buyer types. The annual study only represents primary residence purchases and does not include investors and vacation home buyers. Results include both new and existing homes.
5 Distressed sales (foreclosures and short sales), days on market, first-time buyers, all-cash transactions and investors come from a monthly survey for NAR’s REALTORS® Confidence Index, published on nar .realtor.