Welcome to Extreme Investor Network, your go-to source for the latest business news and insights. Today, we are diving into the current state of the housing market with a focus on existing home sales.
According to the National Association of Realtors (NAR), sales of previously owned homes remained stagnant in May, sitting at a 30-year low. Prices continued to soar to record highs, while mortgage rates also remained high, creating a challenging environment for potential buyers.
Despite expectations of a spring recovery, Lawrence Yun, chief economist at NAR, expressed disappointment in the lack of improvement in home sales. Factors such as rising mortgage rates and limited inventory have contributed to this stagnant market trend.
One interesting development in May was the increase in inventory, with the number of homes for sale jumping by 6.7% month-to-month. While this increased supply is a positive sign for the market, it is still relatively low given the current demand and demographics.
The median price of an existing home sold in May reached a record high of $419,300, marking a 5.8% year-over-year increase. Prices have been steadily climbing across all regions, driven by strong demand and limited supply.
First-time buyers are making up 31% of sales, showing resilience in the face of rising prices and competition. Cash transactions also remain prevalent, accounting for 28% of sales.
Looking ahead, the increase in inventory is expected to help boost home sales and moderate price gains in the coming months. As more properties become available, consumers will have greater options when making purchasing decisions.
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