Existing-Home Sales Barely Spike in May - RisMedia.com
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The National Association of REALTORS®’ (NAR) most recent existing-home sales report shows that existing-home sales rose 0.2% in April, reaching a seasonally adjusted rate of 4.3 million.
Tracking national sales for the month of May 2023, the data shows a slight bump month-over-month, but an overall decline year-over-year.
Key data points:
Single-family and condo/co-op sales:
Regional breakdown:
Takeaways:
“A temporary capital gains tax reduction on a sale of investment property can lead to a boost in housing inventory, home sales and the economy. Policymakers need to seriously consider the measure,” said NAR President Kenny Parcell, a REALTOR® from Spanish Fork, Utah, and broker/owner of Equity Real Estate Utah.
“Mortgage rates heavily influence the direction of home sales,” said NAR Chief Economist Lawrence Yun. “Relatively steady rates have led to several consecutive months of consistent home sales. Available inventory strongly impacts home sales, too. Newly constructed homes are selling at a pace reminiscent of pre-pandemic times because of abundant inventory in that sector. However, existing-home sales activity is down sizably due to the current supply being roughly half the level of 2019.”
Realtor.com Chief Economist Danielle Hale commented:
“Sales of existing homes steadied in May, increasing 0.2% to a pace of 4.30 million as gains in the South and West offset mild declines in the Northeast and Midwest. The pace of home sales continues to exceed the 4 million sales low reached in January, yet it still lags year ago sales by a considerable 20.4%.
“Mortgage rates in April were relatively steady, and the median home sale price continued to decline modestly, dropping 3.1% from May 2022. This gave buyers time to shop without fear of having to reset their housing budgets while on the hunt. Nevertheless, nearly 4 in 5 (78%) home shoppers surveyed this spring thought it at least somewhat likely that they would be priced out of the housing market if home prices and rates continue to rise.
“A dearth of newly listed homes has made it challenging for buyers to find a good match if their criteria are too specific. Although total inventory in May was up 3.8% from April, it was down 6.1% from one year ago, and the number of newly listed homes fell 22.7% behind last May. Nevertheless, a market rendered slightly less competitive amid high costs is opening doors for some buyers. The first-time buyer share dipped from April, but was up to 28% in May from 27% one year ago.
“With fewer homeowners poised to become sellers in 2023, buyers have a tough road ahead. Our revised 2023 outlook expects that there will be some positives, namely, a gradual decline in mortgage rates beginning midyear and a continued softness in home prices that will start to stabilize high housing costs. On net home sales are expected to tally roughly 4.2 million in 2023, their lowest annual total since 2012.”
For the full report, click here.
Devin Meenan is an assistant editor for RISMedia.
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Tracking national sales for the month of May 2023, the data shows a slight bump month-over-month, but an overall decline year-over-year.
Key data points:
Single-family and condo/co-op sales:
Regional breakdown:
Takeaways:
“A temporary capital gains tax reduction on a sale of investment property can lead to a boost in housing inventory, home sales and the economy. Policymakers need to seriously consider the measure,” said NAR President Kenny Parcell, a REALTOR® from Spanish Fork, Utah, and broker/owner of Equity Real Estate Utah.
“Mortgage rates heavily influence the direction of home sales,” said NAR Chief Economist Lawrence Yun. “Relatively steady rates have led to several consecutive months of consistent home sales. Available inventory strongly impacts home sales, too. Newly constructed homes are selling at a pace reminiscent of pre-pandemic times because of abundant inventory in that sector. However, existing-home sales activity is down sizably due to the current supply being roughly half the level of 2019.”
Realtor.com Chief Economist Danielle Hale commented:
“Sales of existing homes steadied in May, increasing 0.2% to a pace of 4.30 million as gains in the South and West offset mild declines in the Northeast and Midwest. The pace of home sales continues to exceed the 4 million sales low reached in January, yet it still lags year ago sales by a considerable 20.4%.
“Mortgage rates in April were relatively steady, and the median home sale price continued to decline modestly, dropping 3.1% from May 2022. This gave buyers time to shop without fear of having to reset their housing budgets while on the hunt. Nevertheless, nearly 4 in 5 (78%) home shoppers surveyed this spring thought it at least somewhat likely that they would be priced out of the housing market if home prices and rates continue to rise.
“A dearth of newly listed homes has made it challenging for buyers to find a good match if their criteria are too specific. Although total inventory in May was up 3.8% from April, it was down 6.1% from one year ago, and the number of newly listed homes fell 22.7% behind last May. Nevertheless, a market rendered slightly less competitive amid high costs is opening doors for some buyers. The first-time buyer share dipped from April, but was up to 28% in May from 27% one year ago.
“With fewer homeowners poised to become sellers in 2023, buyers have a tough road ahead. Our revised 2023 outlook expects that there will be some positives, namely, a gradual decline in mortgage rates beginning midyear and a continued softness in home prices that will start to stabilize high housing costs. On net home sales are expected to tally roughly 4.2 million in 2023, their lowest annual total since 2012.”
For the full report, click here.
Devin Meenan is an assistant editor for RISMedia.
Your email address will not be published. Required fields are marked *
You can have seamless client communication by utilizing automation with a powerful adoption engine. Visit https://www.realestatewebmasters.com/crm/ to find out more Learn more
Click below to receive the latest real estate news and events directly to your inbox.
About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC
© 2023 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.
© 2023 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.
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