2023-06-22 17:07:13
U.S. existing home sales barely rose in May, inventory constraints intensify
2023-06-23 01:07:13 Source: Financial circles share to:
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U.S. existing home sales barely rose in May as high mortgage rates continued to dampen demand and prevent homeowners from listing their properties on the market.
Existing home sales edged up 0.2% to an annualized rate of 4.3 million units in May, according to data released by the National Association of Realtors (NAR) on Thursday. Unadjusted sales fell more than 18% year-over-year.
The median sale price of existing homes fell 3.1% year-over-year to $396,100, the biggest drop since 2011. In terms of historical data, the price remains high by current month levels, reflecting limited supply.
Pending home sales fell 6.1% year over year to 1.08 million units, the lowest May inventory level in data going back to 1999.
Constrained inventory levels and high mortgage rates continue to hamper the resale housing market. This makes homeowners reluctant to replace their homes, incurs higher borrowing costs, and pushes buyers to look to new builds.
“Relatively stable interest rates have resulted in relatively steady home sales for several consecutive months,” NAR chief economist Lawrence Yun said in a statement. half of the level.”
Mortgage rates are still hovering near their highest levels in decades, and Fed policymakers said last week they expect two more rate hikes this year. Federal Reserve Chairman Jerome Powell reiterated that forecast in testimony before the House Financial Services Committee on Wednesday, adding that housing inflation was poised to decline significantly going into next year.
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