US existing home sales fall in May as prices hit record-high

NEW YORK (AA) : US existing home sales declined 0.7% in May as sales prices hit record-high level, the National Association of Realtors (NAR) said Friday.

Existing home sales, which measure the change in the number of existing residential buildings sold, decreased to a seasonally adjusted annual rate of 4.11 million in May.

The figure, however, came in slightly higher than estimates of 4.08 million, while the April figure stood at 4.14 million for a monthly decline of 1.9%.

The median existing home sales price annually jumped 5.8% to reach $419,300 in May — the highest price ever recorded and the eleventh consecutive month of year-on-year price gains, said the NAR.

“Home prices reaching new highs are creating a wider divide between those owning properties and those who wish to be first-time buyers,” NAR Chief Economist Lawrence Yun said in a statement. “The mortgage payment for a typical home today is more than double that of homes purchased before 2020.”

On an annual basis, existing home sales also decreased 2.8%, down from 4.23 million recorded in May 2023.

“Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months,” said Yun. “Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions.”