Property prices in the U.S. have seen a relentless climb with median prices
rising above $400,000 for the first time while sales activity has slowed due to
higher mortgage rates.
Sale of existing homes dropped for a fourth straight month to 3.4% in May,
the weakest rate since June 2020, according to the National Association Realtors (NAR). Sales were 8.6% lower
than in May 2021.
Around 1.6 million homes were up for sale at the end of May, an increase of
12.6% month to month but still down by 4.1% from May 2021. At the current sales
pace, unsold inventory sits at 2.6 months of supply, up from 2.2 months in April
and 2.5 months in May 2021.
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Properties typically remained on the
market for 16 days in May, down from 17 days in April and 17 days in May 2021.
Eighty-eight percent of homes sold in May 2022 were on the market for less than
a month.
The low supply has pushed the rates up. The median existing-home price rose
14.8% in May from a year earlier to $407,600, a record high in data going back
to 1999.
Rapidly rising rates and record home prices have put a tough challenge for
first-time buyers. First-time buyers were responsible for 27% of sales in
May, down from 28% in April and down from 31% in May 2021. NAR’s 2021 Profile
of Home Buyers and Sellers – released in late 2021.
Further sales declines should be expected in the upcoming months given
housing affordability challenges from the sharp rise in mortgage rates this
year,” said NAR Chief Economist Lawrence Yun.
Meanwhile, many factors determine if it is the right time to shop for a
home. Learn whether is it best time to buy a home.
Buying a house is one of the biggest transactions you are likely to make in
your lifetime. Here is a step-by-step guide to how to save money for your dream
house.
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Innovative content strategists, writers, bloggers, and editors. We believe in delivering quality and creative content considering accuracy.
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About
The Fellowship of Penny Calling Penny
Innovative content strategists, writers, bloggers, and editors. We believe in delivering quality and creative content considering accuracy.
See author's posts
"When money realizes that it is in good hands, it wants to stay and multiply in those hands."
Idowu Koyenikan
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