Home sales fell in May according to a new report from the National Association of Realtors (NAR). New data revealed that home sales fell in all four major U.S. regions. The South saw sales drop month over month, while the Northeast, Midwest and West remained relatively unchanged. Meanwhile, year-over-year sales increased in the Midwest, while falling in the Northeast, South and West.

Total existing home sales, including single-family homes, town homes, condominiums and co-ops, fell 0.7 percent between April and May to a seasonally adjusted annual rate of 4.11 million home sales. Year-over-year sales fell 2.8 percent, down from 4.23 million in 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 rose from 1.08 million in 2023 to 1.28 million in May, up 6.7 percent. At the current sales pace, unsold inventory remains at a 3.7-month supply, up from 3.5 months in April pf this year compared with 3.1 months in May 2023.

The median house price in May was $419,300, the highest price ever recorded, up 5.8 percent from 2023 when the average median house selling price was $396,500. Price gains were seen across all four regions of the U.S.

"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."

Regionally, existing home sales in the Northeast in May remained unchanged from April at 480,000, down 4 percent compared with May 2023. The median price in the Northeast was $479,200, up 9.2 percent from the prior year.

In the Midwest, existing home sales also remained unchanged an annual rate of 1 million in May, up 1 percent from one year ago. The median price in the Midwest was $317,100, up 6.4 percent compared with May 2023.

In May, existing home sales in the South fell 1.6 percent from April to an annual rate of 1.87 million, down 5.1 percent from the previous year. The median price in the South was $374,300, up 3.6 percent from last year.

In the West, May's existing-home sales were equivalent to April at an annual rate of 760,000, a drop of 1.3 percent from one year before. The median price in the West was $632,900, up 5.5 percent from May 2023.


Source: National Association of Realtors