Existing-Home Sales Edge Higher in May Despite MortGage Rate Pressure

Inventory Rises – A Relief for Tight Supple Conditions? Inventory Saw Notable Improvement, with Total Housing Stock Rising 6.2% From April to 1.54 Million Units, A 20.3% Increase from Last Year. This Equates to A 4.6-Month Supply, UP from 4.4 Months in April and 3.8 MONTS IN MAY 2024. While Still Below Pre-Pandemic Norms, The Increase Offers Somefers.

Median Prices, However, Continue to Push Upward. The National Median Existation-Home Price Rose 1.3% Year-Over-Year to $ 422,800-A Record High for the MONTH OF MAY. This Marks The 23rd Straight Month of Annual Price Gains. Regionally, The Northeast Led with A 7.1% Price Jump to $ 513.300, While the South Posted a Slight Decline of 0.7% to $ 367.800.

Mixed Regional and Segment Performance Sales Were Regionally Uneven. The West Posted A 5.4% MONTHLY DROP AND IS NOW DOWN 6.7% from A Year Earlier, While The Northeast and Midwest Recorded MONTHLY GAINS OF 4.2% AND 2.1%, REESPECTIVELY. In Segment Terms, Single-Family Sales Rose 1.1% MONTH-OVER-MONTH TO 3.67 Million, While Condo/Co-Op Sales Fell 2.7% to 360,000 Units.

Investor Presance Increased, with 17% of Transactions from Investors or Second-Home Buyers-Up from 15% in April. First-Time Buyers Accounted for 30% of Sales, A DIP from 34% The Prior MONT, SIGNALING AFFORDODITY CHALLENges. Median Days on Market Decreated to 27, from 29 in April, Indicating Lingering Buyer Competition.

Market Outlook: Cautious Bullishness Hinges on Mortgage Rates The Modest Sales Gain and Rising Inventory Suggest Tentative Recovery Potential. However, Persentable High Mortgage Rates and Elegated Prices Cap Broader Upside. Should Borrowing Costs Ease Further, Nar Expects Improved Turnover Fueled By Strong Job Growth and Healthy Household Incomes. For Now, Traders Should View the Housing Market As Cautioously Bullish – With Upside Contingent On Rate Relief.

More Information in Our Economic Calendar.