Record High Home Prices Show Strength in Market Despite Decline in May Sales
In May, sales of existing homes fell for the third consecutive month, coinciding with record-high prices. Compared to the previous year, sales declined by 2.8%.
According to Yahoo Finance, the inventory of homes for sale increased almost 7% to 1.28 million units in May from the previous month, according to the NAR. The current level is considered a 3.7-month supply, the highest in over four years. Inventory is nearly 19% higher than in the same month a year ago.
“People’s circumstances change,” Yun said. Households wanting to retire in different locations, families with new children needing a bigger house, and workers relocating for new jobs are all reasons homeowners may be listing their homes.
“With time, people just simply cannot live in the same house,” Yun said. Still, inventory remains much lower than in the pre-pandemic era, when available units ranged from 1.8 million to 2.3 million prior to 2019.
