In May, U.S. existing home sales rose slightly by 0.8% from April to an annualized rate of 4.03 million, defying forecasts of a decline. However, sales remained 0.7% below last year’s levels. Gains were driven by increased listings — inventory rose over 20% year-over-year — but higher mortgage rates continued to suppress activity.
Sales rose in the Northeast, Midwest, and South but fell 5.4% in the West, the country’s priciest region. The median home price hit a record $422,800, up 1.3% annually, due to persistent demand and still-limited supply.
More homes are selling above asking price (28%), though first-time buyers remain at 30% of sales. Cash deals made up 27% of transactions. Homes are still selling quickly, averaging 27 days on the market. High-end sales cooled, particularly for $1M+ homes, while modest growth occurred in the $750K–$1M range.
The National Association of Realtor’s chief economist says lower interest rates in the second half of the year could reignite broader market activity.
Source : http://bit.ly/3TgYV86
By: Jon Iacono