Existing-home sales in the South fell for the third consecutive month, hitting a seasonally adjusted annual rate of 1.87 million in May. This represents a 1.6% decline from the previous month and marks the second lowest level this year. Despite this decrease, the South continues to dominate the market, accounting for 45.4% of all existing-home sales nationwide.
South Stands Alone: In the other three regions, home prices remained flat.
Price Surge Continues. The median price in the South rose for the fourth straight month to $374,300, up 3.6% from last year and the highest price on record.
- National trend: Reflecting similar patterns, existing-home sales across the U.S. dropped to a seasonally adjusted annual rate of 4.11 million, a 0.7% decline from the previous month. However, this was slightly better than the 4.10 million economists had expected.
- National median price: Climbed to $419,300, setting a new record and marking the eleventh consecutive month of year-over-year price increases.
Inventory Hits 4-Year High: Total housing inventory at the end of May was 1.28 million units, a 6.7% increase from April and the highest since July 2022. Unsold inventory now represents a 3.7-month supply at the current sales pace, up from 3.5 months in April and the highest level since June 2020.
First-Timer: First-time homebuyers accounted for 31% of sales in May, down from 33% in April but up from 28% in May 2023.
What They’re Saying: Lawrence Yun, NAR economist, Emphasized that the rise in inventory is a positive development for prospective homeowners. “Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months…Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions.”
