Existing-Home Sales Edged Lower by 0.7% in May as Median Sales Price Reached Record High of $419,300
June 21 2024 - 10:00AM
Key Highlights
- Existing-home sales
slipped 0.7% in May to a seasonally adjusted annual rate of 4.11
million. Sales descended 2.8% from one year ago.
- The median
existing-home sales price jumped 5.8% from May 2023 to $419,300 –
the highest price ever recorded and the eleventh consecutive month
of year-over-year price gains.
- The inventory of
unsold existing homes grew 6.7% from the previous month to 1.28
million at the end of May, or the equivalent of 3.7 months’ supply
at the current monthly sales pace.
Existing-home sales slightly declined in May as the median sales
price climbed to a record high, according to the National
Association of Realtors®. In the four major U.S. regions, sales
slid month-over-month in the South but were unchanged in the
Northeast, Midwest and West. Year-over-year, sales rose in the
Midwest but receded in the Northeast, South and West.Total
existing-home sales[1] – completed transactions that
include single-family homes, townhomes, condominiums and co-ops –
retreated 0.7% from April to a seasonally adjusted annual rate of
4.11 million in May. Year-over-year, sales waned 2.8% (down from
4.23 million in May 2023).“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.”Total housing inventory[2]
registered at the end of May was 1.28 million units, up 6.7% from
April and 18.5% from one year ago (1.08 million). 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.The median existing-home
price[3] for all housing types in May was $419,300, the highest
price ever recorded and an increase of 5.8% from one year ago
($396,500). All four U.S. regions registered price gains.“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.”REALTORS® Confidence IndexAccording to the monthly
REALTORS® Confidence Index, properties typically 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 were responsible for 31% of
sales in May, down from 33% in April but up from 28% in May 2023.
NAR’s 2023 Profile of Home Buyers and Sellers – released in
November 2023[4] – found that the annual share of first-time buyers
was 32%.All-cash sales accounted for 28% of transactions in May,
unchanged from April and up from 25% one year ago.Individual
investors or second-home buyers, who make up many cash sales,
purchased 16% of homes in May, identical to April and up from 15%
in May 2023.Distressed sales[5] – foreclosures and short sales –
represented 2% of sales in May, unchanged from last month and the
previous year.Mortgage RatesAccording to Freddie Mac, the
30-year fixed-rate mortgage averaged 6.87% as of June 20. That’s
down from 6.95% the prior week but up from 6.67% one year
ago.Single-family and Condo/Co-op SalesSingle-family home
sales declined to a seasonally adjusted annual rate of 3.71 million
in May, down 0.8% from 3.74 million in April and 2.1% from the
prior year. The median existing single-family home price was
$424,500 in May, up 5.7% from May 2023.At a seasonally adjusted
annual rate of 400,000 units in May, existing condominium and co-op
sales were unchanged from last month and down 9.1% from one year
ago (440,000 units). The median existing condo price was $371,300
in May, up 5.1% from the previous year ($353,300).Regional
Breakdown Existing-home sales in the Northeast in May were
identical to April at an annual rate of 480,000, a decline of 4%
from May 2023. The median price in the Northeast was $479,200, up
9.2% from the prior year.In the Midwest, existing-home sales were
unchanged from one month ago at an annual rate of 1 million in May,
up 1% from one 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 the previous year. The median price in the South was
$374,300, up 3.6% from last year.In the West, existing-home sales
in May were equivalent to April at an annual rate of 760,000, a
drop of 1.3% from one year before. 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.
# # #
For local information, please contact the local association of
Realtors® for data from local multiple listing services (MLS).
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 Pending Home Sales Index
for May is scheduled for release on June 27, and Existing-Home
Sales for June will be released on July 23. Release times are 10
a.m. Eastern.
Information about NAR is available at
nar.realtor. This and other news releases are posted in
the newsroom at nar.realtor/newsroom.
Statistical data in this release, as well as other tables and
surveys, are posted in the “Research and Statistics” tab.
[1] Existing-home sales, which include single-family, townhomes,
condominiums and co-ops, are based on transaction closings from
Multiple Listing Services. Changes in sales trends outside of MLSs
are not captured in the monthly series. NAR benchmarks home sales
periodically 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 the
acceptance of a deposit. Because of these differences, it is not
uncommon for each series to move in different directions in the
same month. In addition, existing-home sales, which account for
more than 90% of total home sales, are based on a much larger data
sample – about 40% of multiple listing service data each month –
and typically are not subject to large prior-month
revisions.
The annual rate for a particular 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 factor
out seasonal variations in resale activity. For example, home sales
volume is normally higher in the summer than in the winter,
primarily because of differences in the weather and family buying
patterns. However, seasonal factors cannot compensate for abnormal
weather
patterns.
Single-family data collection began monthly in 1968, while condo
data collection began quarterly in 1981; the series were combined
in 1999 when monthly collection of condo data began. Prior to this
period, single-family homes accounted for more than nine out of 10
purchases. Historic comparisons for total home sales prior to 1999
are based on monthly single-family sales, combined with the
corresponding quarterly sales rate for condos.
[2] Total inventory and month’s supply data are available back
through 1999, while single-family inventory and month’s supply are
available back to 1982 (prior to 1999, single-family sales
accounted for more than 90% of transactions and condos were
measured only on a quarterly basis).
[3] The median price is where half sold for more and half sold
for less; medians are more typical of market conditions than
average prices, which are skewed higher by a relatively small share
of upper-end transactions. The only valid comparisons for median
prices are with the same period a year earlier due to seasonality
in buying patterns. Month-to-month comparisons do not compensate
for seasonal changes, especially for the timing of family buying
patterns. Changes in the composition of sales can distort median
price data. Year-ago median and mean prices sometimes are revised
in an automated process if additional data is received.The national
median condo/co-op price often is higher than the median
single-family home price because condos are concentrated in
higher-cost housing markets. However, in a given area,
single-family homes typically sell for more than condos as seen in
NAR’s quarterly metro area price reports.
[4] Survey results represent owner-occupants and differ from
separately reported monthly findings from NAR’s REALTORS®
Confidence Index, which include all types of buyers. The annual
study only represents primary residence purchases, and does not
include investor 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 are
from a monthly survey for the NAR’s REALTORS® Confidence Index,
posted at nar.realtor.
Troy Green
National Association of Realtors®
tgreen@nar.realtor