Sales of existing homes fell 0.4 percent in May, dropping from a seasonally adjusted annual rate of 5.45 million to 5.43 million, according to the National Association of Realtors (NAR).
Despite a solid economy and job market, it is the second straight month of existing home sales decline, said NAR Chief Economist Lawrence Yun.
âClosings were down in a majority of the country last month and declined on an annual basis in each major region,â Yun said in a statement. âIncredibly low supply continues to be the primary impediment to more sales, but thereâs no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market.â
The median existing home price for all housing types was $264,800 in May, an all-time high and 4.9 percent above the May 2017 median price of $252,500.
Regionally, sales in the Northeast increased 4.6 percent since April, but remain 11.7 percent below May 2017 sales. Sales of existing homes declined 2.3 percent in the Midwest and are 2.3 percent below one year ago. Sales in the South fell 0.4 percent in May and remain unchanged from last year. Existing home sales in the West decreased 0.4 percent and are also unchanged from May 2017.
