Sales of previously-occupied homes dropped for the fourth consecutive month in May as soaring prices and a limited quantity of available properties discouraged many would-be buyers.
Existing home sales dropped 0.9percent last month from April to some seasonally-adjusted yearly rate of 5.8 million units, the National Association of Realtors said Tuesday. The string of revenue declines comes following sharp gains last fall and through the wintermonths, as many Americans sought more living area during the pandemic. Sales are up almost 45% from last May, when purchases fell to their lowest point of this COVID-19 outbreak.
The fall in earnings suggests that the hot housing market is cooling a little, even as hiring is stable and the market is recovering quickly from the outbreak downturn. Home sales boomed last year as many Americans sought more living area throughout the pandemic. That lowered the amount of homes available and caused prices to spike.
That growth has probably frustrated many would-be home buyers, particularly first-time buyers, and directed them to postpone a house purchase. The median sales price topped $350,000 final month, the NAR saida record high.
Prices climbed so quickly that by May, roughly half of all homes sold were purchased for more than their asking price, based on real estate broker Redfin. Two years before, prior to the pandemic, only one-quarter of earnings were above the asking price.
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Historically low mortgage rates have helped fuel sales by making monthly payments less expensive. The typical Rate of Interest on a 30-year mortgage fell to 2.93% last week, based on mortgage buyer Freddie Mac