Total existing-home sales fell 0.7% from April to May as the median sales price rose to a record high of $419,300 – a 5.8% annual increase according to the National Association of Realtors (NAR). Year-over-year existing home sales declined 2.8%, down from 4.23 million in May 2023.
Single-family home sales declined 2.1% year over year, while existing condo and co-op sales fell 9.1% from a year ago. The median existing condo price was $371,300 in May, up 5.1% from May 2023 ($353,300).
“Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months,” said NAR Chief Economist Lawrence Yun. “Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions.”
Regionally, the year-over-year decline in existing-home sales was most pronounced in the South and Northeast, where sales fell 5.1% and 4% respectively. They fell 1.3% in the West and rose 1% from a year ago in the Midwest. Existing-home sales in the Northeast, West, and Midwest were all identical to April while dropping 1.6% month over month in the South.
Total housing inventory as of the end of May was 1.28 million units, up 6.7% from April and 18.5% from one year ago (1.08 million), and unsold inventory sits at a 3.7-month supply at the current sales pace, up from 3.5 months in April and 3.1 months in May 2023.
“Home prices reaching new highs are creating a wider divide between those owning properties and those who wish to be first-time buyers,” Yun added. “The mortgage payment for a typical home today is more than double that of homes purchased before 2020. Still, first-time buyers in the market understand the long-term benefits of owning.”
First-time home buyers (FTHB) still comprised a large portion of purchasers in May, with NAR’s data showing that 31% of existing home sales went to FTHBs, down from 33% in April but up from 28% in May 2023. The annual share of FTHBs in 2023 was 32%, per NAR data.
Activity from individual investors or second-home buyers remained flat, their 16% of existing homes purchased in May identical to April and up from 15% in May 2023.
