May home sales rose 4.8% month-over-month to 341,929, but stood 2.9% lower than last year as new listings decreased 0.8% month-over-month and fell 4.1% year-over-year to 422,956, according to Zillow’s May market report.
As home sales and new listings declined—an abnormal trend for May and June—the typical mortgage rate rose 1.1% from April to May for a monthly total of $1,861. Mortgage rates, however, are still 3.1% lower than last year. The typical home value inched up 0.6% month-over-month to $368,720, according to the report.
Inventory rose for the 30th consecutive month, reaching 1.36 million homes for sale in May, a 4.6% monthly increase and 1.0% higher than last year.
"May housing results were disappointing for those hanging on to hope of a stronger year for sales," said Mischa Fisher, chief economist at Zillow. "Inventory is rising, but weekly data suggests it could flatline in the next four weeks. A June peak for options home shoppers have to choose from would be early on the calendar, possibly foreshadowing slower sales in the second half of the year."
Read the full report here.
