Existing-home Sales Decline by 0.7% in May; Median Sales Price Hits Record High of $419,300

WASHINGTON (June 21, 2024) – The National Association of REALTORS® reported a slight decrease in existing-home sales in May, coinciding with a new record high median sales price. Sales declined month-over-month in the South but remained steady in the Northeast, Midwest, and West. Annually, sales increased in the Midwest but dropped in the Northeast, South, and West.

Total existing-home sales, which include single-family homes, townhomes, condominiums, and co-ops, fell by 0.7% from April, reaching a seasonally adjusted annual rate of 4.11 million in May. Compared to May 2023, sales were down 2.8% from 4.23 million.

NAR Chief Economist Lawrence Yun commented, "An increase in inventory will likely boost home sales and stabilize home prices in the coming months. More available properties provide buyers with better choices."

Total housing inventory at the end of May was 1.28 million units, up 6.7% from April and 18.5% from a year ago (1.08 million). The unsold inventory stands at a 3.7-month supply, compared to 3.5 months in April and 3.1 months in May 2023.

The median existing-home price for all housing types in May was $419,300, the highest ever recorded, and a 5.8% increase from a year ago ($396,500). All four U.S. regions saw price gains.

"New high home prices are widening the gap between current homeowners and aspiring first-time buyers," Yun added. "Today’s mortgage payments are more than double those of homes purchased before 2020. Nevertheless, first-time buyers recognize the long-term benefits of owning a home."

REALTORS® Confidence Index

The monthly REALTORS® Confidence Index indicated that properties typically stayed on the market for 24 days in May, down from 26 days in April but up from 18 days in May 2023.

First-time buyers made up 31% of sales in May, down from 33% in April but up from 28% in May 2023. NAR's 2023 Profile of Home Buyers and Sellers, released in November 2023, showed the annual share of first-time buyers was 32%.

All-cash sales constituted 28% of transactions in May, unchanged from April and up from 25% a year ago.

Investors or second-home buyers, who are often all-cash buyers, accounted for 16% of home purchases in May, the same as in April and up from 15% in May 2023.

Distressed sales, including foreclosures and short sales, were 2% of sales in May, unchanged from the previous month and year.

Mortgage Rates

Freddie Mac reported that the 30-year fixed-rate mortgage averaged 6.87% as of June 20, down from 6.95% the previous week but up from 6.67% a year ago.

Single-family and Condo/Co-op Sales

Single-family home sales dropped to a seasonally adjusted annual rate of 3.71 million in May, down 0.8% from April and 2.1% from the prior year. The median existing single-family home price was $424,500 in May, a 5.7% increase from May 2023.

Existing condominium and co-op sales remained unchanged from April at a seasonally adjusted annual rate of 400,000 units in May but were down 9.1% from the previous year (440,000 units). The median existing condo price was $371,300 in May, up 5.1% from the previous year ($353,300).

Regional Breakdown

In the Northeast, existing-home sales were stable from April to May at an annual rate of 480,000, a 4% decline from May 2023. The median price was $479,200, up 9.2% from the previous year.

The Midwest saw no change in sales from April, holding steady at an annual rate of 1 million in May, up 1% from a year ago. The median price was $317,100, up 6.4% from May 2023.

Existing-home sales in the South fell by 1.6% from April to an annual rate of 1.87 million in May, a 5.1% decrease from the previous year. The median price was $374,300, a 3.6% increase from last year.

The West's existing-home sales remained unchanged from April at an annual rate of 760,000 in May, down 1.3% from the prior year. The median price was $632,900, up 5.5% from May 2023.

About the National Association of REALTORS®

The National Association of REALTORS® is the largest trade association in the U.S., representing 1.5 million members in various facets of the residential and commercial real estate industries. The term REALTOR® identifies a real estate professional who is a member of NAR and adheres to its strict Code of Ethics.

For local data, please contact the local association of REALTORS®, as local MLS data is the most accurate source for sales and price information. NAR's Pending Home Sales Index for May is scheduled for release on June 27, and the Existing-Home Sales report for June will be released on July 23 at 10 a.m. Eastern.

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(Source: the National Association of REALTORS®)