{"id":5592,"date":"2023-06-22T14:20:36","date_gmt":"2023-06-22T14:20:36","guid":{"rendered":"https:\/\/realestateagentmagazine.com\/?p=5592"},"modified":"2023-06-22T14:28:16","modified_gmt":"2023-06-22T14:28:16","slug":"existing-home-sales-edged-higher-by-0-2-in-may","status":"publish","type":"post","link":"https:\/\/realestateagentmagazine.com\/existing-home-sales-edged-higher-by-0-2-in-may","title":{"rendered":"Existing-Home Sales Edged Higher by 0.2% in May"},"content":{"rendered":"<p><strong><u>Key Highlights<\/u><\/strong><\/p>\n<ul type=\"disc\">\n<li>Existing-home sales recorded a minor gain of 0.2% in May to a seasonally adjusted annual rate of 4.30 million. Sales retreated 20.4% from one year ago.<\/li>\n<li>The inventory of unsold existing homes grew 3.8% from the previous month to 1.08 million at the end of May, or the equivalent of 3.0 months\u2019 supply at the current monthly sales pace.<\/li>\n<li>NAR leaders say a temporary capital gains tax reduction on a sale of investment property can lead to a boost in housing inventory.<\/li>\n<\/ul>\n<p>WASHINGTON, D.C.\u2014Existing-home sales marginally increased in May, according to the National Association of Realtors<sup>\u00ae<\/sup>. Sales were mixed among the four major U.S. regions, with the South and West posting improvements and the Northeast and Midwest experiencing pullbacks. All four regions experienced year-over-year sales declines.<\/p>\n<p>Total\u00a0<a href=\"https:\/\/link.mediaoutreach.meltwater.com\/ls\/click?upn=VeAO2BDYBwMOIcllAbzjl9Mu29OECpf-2FOakHhS8jdcKQe5UqG3QgEeHh1QBCPGGJtAcWLxKuqEB-2BFUUCiLNlFQ-3D-3D92t7_yv-2FfUUhElVy-2FWH4w2IjoYM-2Fc4cSJxKO3Mk9Ocg3u8SSKD7UstZTPTCNAZ9R3zrKHCeX1xpYmNoWR70PjcsuLhnoV1ym5fHapLowAt322AIqgCivggNLR4JF9JkNdJM2vrs7tVT635JuDcp3rgtOllMA-2B0Q-2F0w7XtXhT8kiA4WXSZJBkmHAmtPlrdruBpcR3wo-2BcVyxPg4SqPlkL-2BqaUdYGAHKjkvpzLMjA-2BKYtsm9UyIwcqMpQl3oan2uJ-2BoZs0U9345okwV5texUGx1ssq8EcvT60tlqDXnVA59-2F2ABTNCK9PEwZGxkYZfG1PQYD99Dw-2BNCSPrYTg8el3NA1L-2BobQi26C53g-2FKUnXI26VRx0sEDh0-2BsYRe80Wpr3vmi8KuQsbmJ2kMZOtzJL2e8cx9rbA-3D-3D\" target=\"_blank\" rel=\"nofollow noopener\" data-auth=\"NotApplicable\" data-linkindex=\"1\"><strong>existing-home sales<\/strong><\/a><a name=\"x_x__ednref1\"><\/a><a href=\"https:\/\/outlook.office.com\/mail\/inbox\/id\/AAQkAGNmYzE2N2Y1LTg0Y2YtNGNkYi05NDNmLTk2Zjc5MDllNTA4ZAAQAFk6vgpREwxLpHNz6yzkBTw%3D#x__edn1\" data-linkindex=\"2\" target=\"_blank\" rel=\"noopener\"><sup>[1]<\/sup><\/a>\u00a0\u2013 completed transactions that include single-family homes, townhomes, condominiums and co-ops \u2013 rose 0.2% from April to a seasonally adjusted annual rate of 4.30 million in May. Year-over-year, sales dropped 20.4% (down from 5.40 million in May 2022).<\/p>\n<p>\u201cMortgage rates heavily influence the direction of home sales,\u201d said NAR Chief Economist Lawrence Yun. \u201cRelatively steady rates have led to several consecutive months of consistent home sales.\u201d<\/p>\n<p><a name=\"x_x__Hlk51598590\"><\/a>Total housing inventory<a name=\"x_x__ednref2\"><\/a><a href=\"https:\/\/outlook.office.com\/mail\/inbox\/id\/AAQkAGNmYzE2N2Y1LTg0Y2YtNGNkYi05NDNmLTk2Zjc5MDllNTA4ZAAQAFk6vgpREwxLpHNz6yzkBTw%3D#x__edn2\" data-linkindex=\"3\" target=\"_blank\" rel=\"noopener\"><sup>[2]<\/sup><\/a>\u00a0registered 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.<\/p>\n<p>\u201cAvailable inventory strongly impacts home sales, too,\u201d Yun added. \u201cNewly 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.\u201d<\/p>\n<p>The median existing-home price<a name=\"x_x__ednref3\"><\/a><a href=\"https:\/\/outlook.office.com\/mail\/inbox\/id\/AAQkAGNmYzE2N2Y1LTg0Y2YtNGNkYi05NDNmLTk2Zjc5MDllNTA4ZAAQAFk6vgpREwxLpHNz6yzkBTw%3D#x__edn3\" data-linkindex=\"4\" target=\"_blank\" rel=\"noopener\"><sup>[3]<\/sup><\/a>\u00a0<a name=\"x_x__Hlk75051067\"><\/a>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.<\/p>\n<p><a name=\"x_x__Hlk101274943\"><\/a>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.<\/p>\n<p>First-time buyers were responsible for 28% of sales in May, down from 29% in April but up from 27% in May 2022. NAR\u2019s\u00a02022\u00a0<a href=\"https:\/\/link.mediaoutreach.meltwater.com\/ls\/click?upn=VeAO2BDYBwMOIcllAbzjl9Mu29OECpf-2FOakHhS8jdcJAh0yV5iaUaJ8JWX5DEgCGUgnQ24gzvUPczAlHtwxeCePfXu1wngfLyzIouRt1ll0y-2BSwGouJuhiMBwew39ZVECLr-2BKBrnEUYpy4K3KQOkonIqlup-2Bp03yvqEhIsxaNkkzQ4NUA1tNA65X1jvd-2BP6xEcO6_yv-2FfUUhElVy-2FWH4w2IjoYM-2Fc4cSJxKO3Mk9Ocg3u8SSKD7UstZTPTCNAZ9R3zrKHCeX1xpYmNoWR70PjcsuLhnoV1ym5fHapLowAt322AIqgCivggNLR4JF9JkNdJM2vrs7tVT635JuDcp3rgtOllMA-2B0Q-2F0w7XtXhT8kiA4WXSZJBkmHAmtPlrdruBpcR3wo-2BcVyxPg4SqPlkL-2BqaUdYGAHKjkvpzLMjA-2BKYtsm9UwyUSQ0L-2F97naMoMiY8BOvwrcGp9vYuAHjb7DWa2e4fjAjKQJOXMcOtCoirBSyqOwtiGAGEDHLnK2ymsE1sSB6YwMQVRmrR3VbWfEKhtTfFMrJejPF99LA-2Bs0dRICsZNcvq7EgGLsRyz9oF2Y7Stn6R514munnz9QRVDyFs4wkEHw-3D-3D\" target=\"_blank\" rel=\"nofollow noopener\" data-auth=\"NotApplicable\" data-linkindex=\"5\"><em>Profile of Home Buyers and Sellers<\/em><\/a>\u00a0<a name=\"x_x__Hlk117002294\"><\/a>\u2013\u00a0released in November 2022<a name=\"x_x__ednref4\"><\/a><a href=\"https:\/\/outlook.office.com\/mail\/inbox\/id\/AAQkAGNmYzE2N2Y1LTg0Y2YtNGNkYi05NDNmLTk2Zjc5MDllNTA4ZAAQAFk6vgpREwxLpHNz6yzkBTw%3D#x__edn4\" data-linkindex=\"6\" target=\"_blank\" rel=\"noopener\"><sup>[4]<\/sup><\/a>\u00a0\u2013 found\u00a0that the annual share of first-time buyers was 26%, the lowest since NAR began tracking the data.<\/p>\n<p>All-cash sales accounted for 25% of transactions in May, down from 28% in April and identical to one year ago.<\/p>\n<p>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.<\/p>\n<p><a name=\"x_x__Hlk111552684\"><\/a>Distressed sales<a name=\"x_x__ednref5\"><\/a><a href=\"https:\/\/outlook.office.com\/mail\/inbox\/id\/AAQkAGNmYzE2N2Y1LTg0Y2YtNGNkYi05NDNmLTk2Zjc5MDllNTA4ZAAQAFk6vgpREwxLpHNz6yzkBTw%3D#x__edn5\" data-linkindex=\"7\" target=\"_blank\" rel=\"noopener\"><sup>[5]<\/sup><\/a>\u00a0\u2013 foreclosures and short sales \u2013 represented 2% of sales in May, virtually unchanged from last month and the prior year.<\/p>\n<p>According to Freddie Mac, the\u00a0<a href=\"https:\/\/link.mediaoutreach.meltwater.com\/ls\/click?upn=VeAO2BDYBwMOIcllAbzjl9IezIQUeTr1c2cJ-2FBSQ08WZlqpA4pJ5poRgdb0CDf7ludyy_yv-2FfUUhElVy-2FWH4w2IjoYM-2Fc4cSJxKO3Mk9Ocg3u8SSKD7UstZTPTCNAZ9R3zrKHCeX1xpYmNoWR70PjcsuLhnoV1ym5fHapLowAt322AIqgCivggNLR4JF9JkNdJM2vrs7tVT635JuDcp3rgtOllMA-2B0Q-2F0w7XtXhT8kiA4WXSZJBkmHAmtPlrdruBpcR3wo-2BcVyxPg4SqPlkL-2BqaUdYGAHKjkvpzLMjA-2BKYtsm9UzJKahp2p9WkpDFL8oK8l1JuqEvWwjWQ-2FzwfMsb-2F7oUluDYiEsUlkV5TQkaQVBid8X6llPTzTTnErF3HK8yjeSEPpyuxK4l2MPN2fgUT-2BWfOtXt60paYXLP-2B8fCHErCId8jzfY48Ta7uiOqPr5vQkoEadnbG3u0ypO5-2FaMpDCFSPA-3D-3D\" target=\"_blank\" rel=\"nofollow noopener\" data-auth=\"NotApplicable\" data-linkindex=\"8\">30-year fixed-rate mortgage<\/a>\u00a0averaged 6.69% as of June 15. That\u2019s down from 6.71% the previous week but up from 5.78% one year ago.<\/p>\n<h2><strong>Single-family and Condo\/Co-op Sales<\/strong><\/h2>\n<p>Single-family home sales dipped to a seasonally adjusted annual rate of 3.85 million in May, down 0.3% from 3.86 million in April and 20.0% from the previous year. The median existing single-family home price was $401,100 in May, down 3.4% from May 2022.<\/p>\n<p>Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 450,000 units in May, up 4.7% from April but down 23.7% from one year ago. The median existing condo price was $353,000 in May, nearly identical to the prior year ($353,100).<a name=\"x_x__Hlk83131003\"><\/a><\/p>\n<p>\u201cA temporary capital gains tax reduction on a sale of investment property can lead to a boost in housing inventory, home sales and the economy,\u201d said NAR President Kenny Parcell, a Realtor<sup>\u00ae<\/sup>\u00a0from Spanish Fork, Utah, and broker-owner of Equity Real Estate Utah. \u201cPolicymakers need to seriously consider the measure.\u201d<\/p>\n<h2><strong>Regional Breakdown<\/strong><\/h2>\n<p>Existing-home sales in the Northeast declined 2.0% from April to an annual rate of 500,000 in May, down 25.4% from May 2022. The median price in the Northeast was $439,000, up 2.5% from one year ago.<\/p>\n<p>In the Midwest, existing-home sales faded 2.9% from one month ago to an annual rate of 990,000 in May, decreasing 20.8% from the previous year. The median price in the Midwest was $298,000, up 1.1% from May 2022.<\/p>\n<p>Existing-home sales in the South expanded 1.5% from April to an annual rate of 2.02 million in May, sliding 16.5% from the prior year. The median price in the South was $361,400, down 2.7% from May 2022.<\/p>\n<p>In the West, existing-home sales rose 2.6% from the previous month to an annual rate of 790,000 in May, down 25.5% from one year ago. The median price in the West was $596,500, down 5.7% from May 2022.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Highlights Existing-home sales recorded a minor gain of 0.2% in May to a seasonally adjusted annual rate of 4.30 million. Sales retreated 20.4% from one year ago. The inventory of unsold existing homes grew 3.8% from the previous month to 1.08 million at the end of May, or the equivalent of 3.0 months\u2019 supply [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":5596,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":["post-5592","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-news"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/realestateagentmagazine.com\/wp-json\/wp\/v2\/posts\/5592","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/realestateagentmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/realestateagentmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/realestateagentmagazine.com\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/realestateagentmagazine.com\/wp-json\/wp\/v2\/comments?post=5592"}],"version-history":[{"count":2,"href":"https:\/\/realestateagentmagazine.com\/wp-json\/wp\/v2\/posts\/5592\/revisions"}],"predecessor-version":[{"id":5597,"href":"https:\/\/realestateagentmagazine.com\/wp-json\/wp\/v2\/posts\/5592\/revisions\/5597"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/realestateagentmagazine.com\/wp-json\/wp\/v2\/media\/5596"}],"wp:attachment":[{"href":"https:\/\/realestateagentmagazine.com\/wp-json\/wp\/v2\/media?parent=5592"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/realestateagentmagazine.com\/wp-json\/wp\/v2\/categories?post=5592"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/realestateagentmagazine.com\/wp-json\/wp\/v2\/tags?post=5592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}