Existing-home sales inched higher in May, as inventory increased and interest rates remained elevated, the National Association of REALTORS® said.
Specifically, sales rose 0.8% from April to a seasonally adjusted annual rate of 4.03 million. Year over year, sales were down 0.7% from 4.06 million in May 2024.
“The relatively subdued sales are largely due to persistently high mortgage rates. Lower interest rates will attract more buyers and sellers to the housing market,” NAR Chief Economist Lawrence Yun said in a press release. “Increasing participation in the housing market will increase the mobility of the workforce and drive economic growth.”
The 30-year, fixed-rate mortgage averaged 6.81% as of June 18, according to Freddie Mac. That’s down from 6.84% a week before and 6.87% a year earlier.
“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,” Yun added
The median existing-home price for all housing types in May was $422,800, up 1.3% from its year-ago level of $417,200.
By property type, single-family home sales rose 1.1% month over month and 0.3% year over year to a seasonally adjusted annual rate of 3.67 million. The median existing single-family home price was $427,800, up 1.3% on a year-over-year basis.
Existing-condominium and co-op sales slid 2.7% from April to an annual rate of 360,000 units. The median existing condo price was $371,300, up 0.7% from May 2024.
Homes typically remained on the market for 27 days in May, down from 29 days in April and up from 24 days in May 2024.
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