U.S. Existing Home Sales Decline While Prices Rise in May

Sales of existing homes fell 0.7% (-2.8% y/y) during May to 4.11 million units (SAAR) from an unrevised 4.14 million during April and an unrevised 4.22 million in March. The decline came as 30-year fixed rate mortgages averaged 7.06% last month, up from 6.64% in January. They have since fallen to 6.87%, according to Freddie Mac. Sales remained increased from the low of 3.85 million in October 2023 but were below the September 2005 high of 7.26 million. The Action Economics Forecast Survey expected April sales of 4.10 million units. The sales figures are based on closings of sales signed in earlier months.

The median price of all existing homes (NSA) increased 3.1% (5.8% y/y) to a record $419,300 after rising to $406,600 in April. Prices have risen for four consecutive months and are increased from $212,000 ten years earlier. The median price of an existing single-family home increased 3.3% (5.7% y/y) in May to a record $424,500 after rising 3.7% in April. The median price for condos & co-ops strengthened 1.8% (5.1%) to $371,300, after rising 2.0% in April.

Single-family home sales eased 0.8% (-2.1% y/y) last month to 3.71 million units after declining 2.1% in April. Sales were 36.6% below their high of 5.85 million in October 2020. Condo and co-op sales held steady (-9.1% y/y) for the second straight month at 400,000. Sales have declined 45.9% since the January 2021 high of 740,000.

Last month, sales weakened only in the South where they fell 1.6% (-5.1% y/y) to 1.87 million following two months of decline. In the Northeast, sales held steady at 480,000 (-4.0% y/y) after a 4.0% decline in April. Sales in the Midwest, also were unchanged last month (+1.0% y/y) at 1.00 million after an April decline of 1.0%. In the West, an unchanged level of sales at 760,000 (-1.3% y/y) came after a 2.6% decline in April.

The number of existing homes for sale (NSA) rose 6.7% (18.5% y/y) to 1.28 million in May after rising 8.1% in April. The supply of homes on the market at the current selling rate (NSA) rose to 3.7 months from 3.5 months in April. The record low in supply of 1.6 months was reached in January, 2022. These figures date back to January 1999.

The data on existing home sales, prices and affordability are compiled by the National Association of Realtors. The data on single-family home sales extend back to February 1968. Total sales and price data and regional sales can be found in Haver's USECON database. Regional price and affordability data and national inventory data are available in the REALTOR database. Mortgage interest rates can be found in the WEEKLY database. The expectations figure is from the Action Economics Forecast Survey, reported in the AS1REPNA database.