fbpx
White House ‘Social Media Summit’: No Facebook, No Twitter, No Transparency CopyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more White House ‘Social Media Summit’: No Facebook, No Twitter, No TransparencyRead more Twitter to Label Tweets by Leaders Who Break Its RulesRead more Twitter to Label Tweets by Leaders Who Break Its RulesRead more Twitter to Label Tweets by Leaders Who Break Its RulesRead more Twitter to Label Tweets by Leaders Who Break Its RulesRead more

US existing home sales drop in May as prices hit new record

show caption
Median US home prices hit a new record in May as inventory remains tight./AFP
Print Friendly and PDF

Jun 23, 2021 - 03:23 AM

NEW YORK — Existing-home sales fell again in May as limited inventories of available homes again lifted US median home prices to a new record, according to industry data released Tuesday.

Completed transactions of single-family homes dropped 0.9 percent from April to a seasonally adjusted rate of 5.8 million in May, according to the National Association of Realtors.

“Home sales fell moderately in May and are now approaching pre-pandemic activity,” said Lawrence Yun, NAR’s chief economist.

“Lack of inventory continues to be the overwhelming factor holding back home sales, but falling affordability is simply squeezing some first-time buyers out of the market.”

Total housing inventory rose 7.0 percent in May from April, but the median price for all housing types was $350,300, up 23.6 percent from the year-ago period and yet another record.

Low mortgage rates enabled by the Federal Reserve’s emergency rate cuts at the start of the Covid-19 crisis helped support the housing market last year even as the US economy grappled with widespread unemployment caused by the pandemic.

Nancy Vanden Houten, lead US economist at Oxford Economics, said the housing market remains underpinned by strong demand and an improving economy, “but a lack of supply and eroding affordability will continue to pose headwinds.”

But Ian Shepherdson of Pantheon Macroeconomics said there were signs the market is shifting, noting that inventory, while low, is “starting to creep higher,” he said in a note.

“We think the real story more likely is that demand for single-family homes in the suburbs has faded as Covid has retreated,” Shepherdson said.

“The decline in sales and rise in inventory means that the extreme upward pressure on prices should soon start to fade.”

  • bio
  • twitter
  • facebook
  • latest posts

LMBCBUSINESS.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.