The National
Association of Realtors (NAR) announced on Friday that the U.S. existing home
sales fell 0.7 per cent m-o-m to a seasonally adjusted rate of 4.11 million in May
from an unrevised 4.14 million in April. This marked the third
straight drop in existing home sales and represented the lowest rate since January (4.00 million).
Economists had forecast
home re-sales increasing at
a 4.10 million-unit pace last month.
In y-o-y terms,
existing-home sales also declined 2.8 per cent in May.
Across regions,
existing-home sales fell in the South (-1.6 per cent m-o-m), but were unchanged
in the remaining three regions - the Northeast, West, and Midwest.
In y-o-y terms, three of the four major regions - the South
(-5.1 per cent y-o-y), the Northeast (-4.0 per cent y-o-y) and the West (-1.3 per
cent y-o-y) - recorded decreases in existing-home sales, while the Midwest
posted an advance (+1.0 per cent y-o-y).
Over the
reviewed period, the median existing-home price for all housing types surged 5.8
per cent y-o-y to $419,300. This marked the 11th straight month
of year-over-year gains in median existing-home price and the highest price ever recorded.
Single-family
home sales came in at a seasonally-adjusted annual rate of 3.71 million in May,
down 0.8 per cent m-o-m and 2.1 per cent y-o-y. Meanwhile, existing condominium and co-op sales were registered
at a seasonally-adjusted annual rate of 400,000 units in May, flat m-o-m and down 9.1 per cent y-o-y.
Commenting on
the latest data, Lawrence Yun, NAR chief economist, 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.
Still, first-time buyers in the market understand the long-term benefits of
owning,” he added.