May Existing Home Sales Inched Up 0.2% from April, Down 20.4% YOY

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May Existing Home Sales Inched Up 0.2% from April, Down 20.4% YOY

Washington, DC, June 22, 2023-Total existing-home sales rose 0.2% from April to a seasonally adjusted annual rate of 4.30 million in May, according to the National Association of Realtors. Year-over-year, sales dropped 20.4% (down from 5.40 million in May 2022).

"Mortgage rates heavily influence the direction of home sales," said NAR chief economist Lawrence Yun. "Relatively steady rates have led to several consecutive months of consistent home sales."

Total housing inventory registered at the end of May was 1.08 million units, up 3.8% from April but down 6.1% from one year ago (1.15 million). Unsold inventory sits at a 3.0-month supply at the current sales pace, up from 2.9 months in April and 2.6 months in May 2022.

"Available inventory strongly impacts home sales, too," Yun added. "Newly constructed homes are selling at a pace reminiscent of pre-pandemic times because of abundant inventory in that sector. However, existing-home sales activity is down sizably due to the current supply being roughly half the level of 2019."

The median existing-home price for all housing types in May was $396,100, a decline of 3.1% from May 2022 ($408,600). Prices grew in the Northeast and Midwest but fell in the South and West.

Properties typically remained on the market for 18 days in May, down from 22 days in April but up from 16 days in May 2022. Seventy-four percent of homes sold in May were on the market for less than a month.

First-time buyers were responsible for 28% of sales in May, down from 29% in April but up from 27% in May 2022. NAR's 2022 Profile of Home Buyers and Sellers found that the annual share of first-time buyers was 26%, the lowest since NAR began tracking the data.

All-cash sales accounted for 25% of transactions in May, down from 28% in April and identical to one year ago.

Individual investors or second-home buyers, who make up many cash sales, purchased 15% of homes in May, down from 17% in April and 16% the previous year.

Distressed sales-foreclosures and short sales-represented 2% of sales in May, virtually unchanged from last month and the prior year.

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.69% as of June 15. That's down from 6.71% the previous week but up from 5.78% one year ago.