Real Estate Sales Report May 2024

Existing-home sales slightly declined in May while the median sales price reached a record high, as reported by the National Association of REALTORS® (NAR). Sales fell month-over-month in the South but remained stable in the Northeast, Midwest, and West. Year-over-year, the Midwest saw a rise in sales, whereas the Northeast, South, and West experienced declines.

Total existing-home sales, encompassing single-family homes, townhomes, condominiums, and co-ops, decreased by 0.7% from April, reaching a seasonally adjusted annual rate of 4.11 million in May. Compared to last year, sales dropped by 2.8% from 4.23 million in May 2023.

The NAR Chief Economist, Lawrence Yun, stated that more inventory will eventually help boost home sales and tame home price gains in the upcoming months. Increased housing supply is expected to benefit consumers who want to see more properties before making purchasing decisions.

Total housing inventory at the end of May was 1.28 million units, marking a 6.7% increase from April and an 18.5% increase from one year ago (1.08 million). The unsold inventory is at a 3.7-month supply at the current sales pace, up from 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, up 5.8% from one year ago ($396,500). All four U.S. regions registered price gains.

Yun noted that home prices reaching new highs are creating a wider divide between those owning properties and those who wish to be first-time buyers. The mortgage payment for a typical home today is more than double that of homes purchased before 2020. Despite this, first-time buyers in the market understand the long-term benefits of owning.

REALTORS® Confidence Index According to the monthly REALTORS® Confidence Index, properties typically remained 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 accounted for 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, indicated that the annual share of first-time buyers was 32%.

All-cash sales made up 28% of transactions in May, unchanged from April but up from 25% a year ago. Individual investors or second-home buyers, who comprise many cash sales, purchased 16% of homes in May, the same as in April and up from 15% in May 2023. Distressed sales – foreclosures and short sales – represented 2% of sales in May, unchanged from both last month and the previous year.

Mortgage Rates According to Freddie Mac, 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 declined to a seasonally adjusted annual rate of 3.71 million in May, down 0.8% from 3.74 million in April and 2.1% from the previous year. The median existing single-family home price was $424,500 in May, up 5.7% from May 2023. Existing condominium and co-op sales were unchanged from April, at a seasonally adjusted annual rate of 400,000 units in May, but down 9.1% from one year ago (440,000 units). The median existing condo price was $371,300 in May, up 5.1% from the previous year ($353,300).

Regional Breakdown

• Northeast: Existing-home sales were unchanged from April 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.
• Midwest: Existing-home sales remained steady from April at an annual rate of 1 million, a 1% increase from a year ago. The median price was $317,100, up 6.4% from May 2023.
• South: Sales fell 1.6% from April to an annual rate of 1.87 million in May, down 5.1% from the previous year. The median price was $374,300, up 3.6% from last year.
• West: Sales in May were unchanged from April at an annual rate of 760,000, a 1.3% decrease from one year earlier. 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 America, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term REALTOR® is a registered collective membership mark identifying a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.