Existing-Home Sales Dip as Median Sales Prices Grow

(Illustration courtesy of National Association of Realtors)

Existing-home sales dipped in May as the median sales price climbed to a record high, the National Association of Realtors reported Friday.

Total existing-home sales – 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.”

CoreLogic Chief Economist Selma Hepp noted that what started as a year of recovery offered more of the same for the housing market as the spring home buying season wrapped up. “Home sales disappointed while mortgage rates remained over 7%,” she said. “Still, if the Fed makes a move in September and mortgage rates fall some, the end of the year could be more promising for home sales.”

NAR said total housing inventory at the end of May reached 1.28 million units, up 6.7% from April and 18.5% from one year ago. 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 for all housing types in May equaled $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.