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Existing Home Sales Fall In May

Sales of previously owned homes fell in May, according to new numbers from the National Association of Realtors. Completed transactions were down 9.7 percent from the month before and 26.6 percent below last year at the same time. It was the third consecutive month of decreasing sales since the coronavirus’ first impact in March. But despite the declines, Lawrence Yun, NAR’s chief economist, is optimistic that things will rebound soon. “Sales completed in May reflect contract signings in March and April – during the strictest times of the pandemic lockdown and hence the cyclical low point,” Yun said. “Home sales will surely rise in the upcoming months with the economy reopening, and could even surpass one-year ago figures in the second half of the year.” His optimism is most likely based in other recent housing data showing buyers are returning to the market faster than originally expected. But while rebounding buyer interest is encouraging, it could put upward pressure on prices, if it outpaces the number of homes available for sale. As it is, the median existing-home price rose 2.3 percent year-over-year in May. (source)