Existing home sales showed an increase for the month of May according to a recent report from the National Association of Realtors. All of the 4 major areas across the United States experienced a growth in sales with the Northeast seeing the largest increase.
Total existing home sales of properties including single families, condos, coops and townhomes had jumped up by 2.5% in May to an annual rate of 5.34 million. Lawrence Yun, NAR’s chief economist, said the jump shows that consumers are eager to take advantage of the favorable conditions. “The purchasing power to buy a home has been bolstered by falling mortgage rates, and buyers are responding.”
The median existing home price had also gone up for the month of May by 4.8% which is now the 87th month in a row for increases.
Inventory has increased from the month prior in April and was also up by 2.7% over last year at this time. Unsold inventory is at a 4.3 month supply at the current pace. Though inventory is up, the months’ supply numbers remain near historic lows, which has a direct effect on price, according to Yun. “Solid demand along with inadequate inventory of affordable homes have pushed the median home price to a new record high,” he said.
Days on Market
Homes were on the market for 26 days in May which was up from April at 24 days. This was ironically the same days on market however from May of 2018. Fifty-three percent of homes sold in May were on the market for less than one month.
Finally, mortgage rates had a decline for May which according to Freddie Mac, the average commitment on a 30 year fixed loan was 4.07%. This is lower than the 4.14% in April and surprisingly lower than the 4.54% average for all of 2018.