Home News Existing-Home Sales Fell 3.4% in May; Median Sales Price Surpasses $400,000 for the First Time

Existing-Home Sales Fell 3.4% in May; Median Sales Price Surpasses $400,000 for the First Time

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Washington (21 June 2022) – According to the National Association of Realtors®, pre-owned home sales in May fell for the fourth straight month. Month-on-month sales declined in three of the four major US regions, while year-over-year sales declined in all four regions.

total Existing home sales,1 https://www.nar.realtor/existing-home-salesCompleted transactions, including single-family homes, town homes, condominiums and co-operatives, fell 3.4% from April to a seasonally adjusted annual rate of 5.41 million in May. Sales decreased by 8.6% from the previous year (5.92 million units in May 2021).

“Home sales have basically returned to the levels seen in 2019 before the pandemic, after two years of outbreaks,” said Lawrence Yun, chief economist at NAR. “Also, the market trends for single-family homes and condominium sales are about the same, and the preference for living in the suburbs rather than the urban life that has existed for the past two years has returned to its pre-pandemic state and is declining. It may mean. “

Total housing inventory2 The number of registered vehicles at the end of May was 1.16 million, an increase of 12.6% from April and a decrease of 4.1% from the previous year (1.21 million). Unsold inventory is 2.6 months at the current sales pace, up from 2.2 months in April 2021 and 2.5 months in May.

“Given the challenges of affordable housing due to the surge in mortgage rates this year, we expect further declines in sales in the coming months,” Yun added. “Nevertheless, reasonably priced homes are selling rapidly, and inventory levels still need to rise significantly in order to curb home price increases and provide homebuyers with more options.

Median existing home pricesFive All housing types in May were $ 407,600, up 14.8% from May 2021 ($ 355,000) due to price increases in all regions. This is the 123rd consecutive month of increase over the previous year, the longest consecutive record ever.

Properties are typically down from 16 days in May, 17 days in April 2021 and 17 days in May. Eighty-eight percent of homes sold in May 2022 went to market in less than a month.

First-time buyers accounted for 27% of May sales, down from 28% in April to 31% in May 2021. 2021 of NAR Home Buyer and Seller Profiles – – Released in late 2021Four – Reported that the annual share of first-time buyers is 34%.

Full cash sales accounted for 25% of transactions in May, down from 26% in April and up from 23% recorded in May 2021.

Private investors and pre-owned home buyers, who account for the majority of cash sales, bought 16% of their homes in May, down from 17% in April 2021 and 17% in May.

Distressed saleFive – Foreclosure and shortage of sales – Less than 1% of May sales, basically unchanged from April 2022 and May 2021.

According to Freddie Mac Average commitment rate 30-year traditional fixed-rate mortgages increased from 4.98% in April to 5.23% in May. The average commitment rate for 2021 was 2.96%.

Realtor.com® Market Trend Report In May, Miami (+ 45.9%), Nashville (+ 32.5%) and Orlando (+ 32.4%) showed the largest year-over-year increase in average list prices. Austin reported that homes with lower prices compared to last year had the highest share (+14.7 percentage points), followed by Las Vegas (+12.3 percentage points) and Phoenix (+11.6 percentage points).

Single-family and condominium / co-operative sales

Single-family home sales fell to 4.8 million seasonally adjusted annually in May, down 3.6% from 4.98 million in April and down 7.7% from a year ago. The median price of existing single-family homes in May was $ 414,200, up 14.6% from May 2021.

Sales of existing condominiums and co-operatives were recorded at a seasonally adjusted annual rate of 610,000 units in May, down 1.6% from April and 15.3% from a year ago. The median price of existing condos in May was $ 355,700, up 14.8% annually.

“Reduced home purchases mean more people are renting, and the resulting rise in rental prices could buy more institutional investors to buy single-family homes and turn them into rental properties. Rouda Smith, Realtor® in Plano, Texas and Broker Associates at Dave Perry-Miller Real Estate in Dallas. “To counter this trend, policymakers have made moms and pop investors the first buyers. We should consider encouraging the release of stock to the market by temporarily lowering the capital gain tax on sale. “

Breakdown of the area

Sales of pre-owned homes in the northeast rose 1.5% in May to an annual rate of 680,000, down 9.3% from May 2021. The average price in the northeast was $ 409,700, up 6.7% from a year ago.

Midwest pre-owned home sales fell 5.3% from the previous month, with an annual rate of 1.24 million in May, down 7.5% from May 2021. The average price in the Midwest was $ 294,500, up 9.5% year-on-year.

Sales of pre-owned homes in the South fell 2.8% in May to 2.41 million units a year, down 8.4% year-on-year. The median of the South was $ 375,000, up 20.6% from a year ago. South recorded the fastest pace of price increases compared to the other three regions for the ninth straight month.

Western pre-owned home sales were down 5.3% month-on-month to an annual rate of 1,080,000 in May, down 10.0% from this time last year. The median western price was $ 633,800, up 13.3% from May 2021.

The National Association of Realtors® is America’s largest industry association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industry.

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For local information, contact the Realtors® Local Association to obtain data from the Local Multiple List Service (MLS). Local MLS data is the most accurate source of sales and pricing information in a particular area, but there may be differences in reporting methods.

Note: NAR’s May pending home sales index will be released on June 27th, and existing home sales in June will be released on July 20th. Release time is 10am in the east.

1 Sales of existing homes, including single-family homes, town homes, condominiums, and co-operatives, are based on the completion of transactions from Multiple Listing Services. Changes in sales trends other than MLS are not known in the monthly series. The NAR regularly benchmarks home sales using other sources to assess overall home sales trends, including sales not reported by MLS.

Existing home sales based on closing are different from the US Census Bureau series on new single-family home sales based on contract or deposit acceptance. Due to these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing home sales, which account for more than 90% of total home sales, are based on a much larger data sample (about 40% of monthly multiple listing service data) and are usually not significantly affected by the previous month. revision.

The annual rate for a particular month represents the total number of actual sales for the year if the relative pace of the month is maintained for 12 consecutive months. The seasonally adjusted annual rate is used to report monthly data to rule out seasonal fluctuations in resale activity. For example, home sales are usually higher in the summer than in the winter, mainly due to differences in weather and family buying patterns. However, seasonal factors cannot compensate for extreme weather patterns.

Data collection for single-family homes began monthly in 1968, and data collection for condominiums began quarterly in 1981. The series was integrated in 1999, when monthly collection of condominium data began. Prior to this period, single-family homes accounted for more than 9 out of 10 purchases. Historical comparisons of total home sales prior to 1999 are based on monthly single-family home sales and corresponding quarterly sales rates for condominiums.

2 Total inventory and monthly supply data are available until 1999, while single-family inventory and monthly supply are available until 1982 (prior to 1999, single-family home sales accounted for more than 90% of transactions and condominiums. Was measured only quarterly. Basic).

3 The median price is where half sold more and half sold less. The median is more typical of market conditions than the average price, and the average price is highly distorted by the relatively small share of cap trading. The only valid comparison of the median is the comparison with the same period last year due to the seasonality of the purchase pattern. Monthly comparisons do not compensate for seasonal changes, especially the timing of family purchase patterns. Changes in the composition of sales can distort median price data. If additional data is received, the median and average prices from a year ago may be modified by an automated process.

The median price of condominiums / co-operatives across the country is often higher than the median price of single-family homes, as condominiums are concentrated in the higher-priced housing market. However, in certain regions, single-family homes usually sell more than condominiums, as seen in NAR’s quarterly metropolitan price reports.

Four The survey results represent owners and residents and differ from the monthly survey results reported individually by the NAR. Realtors® Confidence Index, Includes all types of buyers. Investors are underestimated in the annual survey because the questionnaire is mailed to the address of the property they purchased and is generally not returned by the absent owner. Results include both new and existing homes.

Five Bad sales (foreclosure and short-term sales), days in the market, first-time buyers, full cash transactions and investors are from NAR’s monthly survey Realtors® Confidence IndexPosted in nar.realtor.

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