May Sees Home Sales Fall to One of the Lowest Points on Record
There have only been two times in the past decade where the rate of home sales was lower than it is currently
June 17, 2024
Image: Hernan Schmidt / stock.adobe.com
Homes will likely continue to sit on the market longer as the median price continues to rise.
As prices pick up, home sales continue to fall. According to a recent report from housing data tracker Redfin, the number of home sales fell 1.7% month-over-month during May and 2.9% year-over-year. During the past decade, only two months saw fewer home sales: October 2023, due to record high mortgage rates, and May 2020, due to the COVID-19 pandemic bringing buying and selling to a temporary halt.
This report data comes as the median home price continues to rise. In May, the median home price rose 5.1% year-over-year to reach $439,716. At the same time, the average 30-year-fixed mortgage rate hit 7.06%, up from 6.43% one year earlier.
“Buyers today are facing many of the realities of a hot market even though few homes are changing hands,” said Redfin Senior Economist Elijah de la Campa. “Sales are sluggish because high homebuying costs are making both house hunters and prospective sellers skittish. And with so few homes for sale, buyers in some markets are getting into bidding wars, which is helping push home prices to record highs.”
