07/07/2021
NAR May 2021 Existing Housing Report
Existing-home sales decreased for a fourth straight month in May 2021, according to the National Association of Realtors®
Total existing-home sales,1 https://www.nar.realtor/existing-home-sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, dropped 0.9% from April to an annual rate of 5.80 million in May. Sales in total climbed year-over-year, up 44.6% from a year ago (4.01 million in May 2020).
Lawrence Yun, NAR's chief economist said, "Home sales fell moderately in May and are now approaching pre-pandemic activity. Lack of inventory continues to be the overwhelming factor holding back home sales, but falling affordability is simply squeezing some first-time buyers out of the market.” First-time buyers were responsible for 31% of sales in May, also even with April but down from 34% in May 2020.
Total housing inventory at the end of May was 1.23 million units, up 7% from April's inventory and down 20.6% from one year ago (1.55 million).
Unsold inventory sits at a 2.5-month supply at the present sales pace, up from April's 2.4-month supply but down from 4.6-months in May 2020.
Properties typically remained on the market for 17 days in May, unchanged from April and down from 26 days in May 2020. 89% of the homes sold in May 2021 were on the market for less than a month.
The median existing-home price for all housing types in May was $350,300, up 23.6% from May 2020 ($283,500), as every region registered price increases. This is a record high and marks 111 straight months of year-over-year gains since March 2012.
Single-family home sales dropped to an annual rate of 5.08 million in May, down 1.0% from 5.13 million in April, and up 39.2% from one year ago. The median existing single-family home price was $356,600 in May, up 24.4% from May 2020.
Existing condominium and co-op sales were recorded at a seasonally-adjusted annual rate of 720,000 units in May, unchanged from April but up 100.0% from one year ago. The median existing condo price was $306,000 in May, an annual increase of 21.5%.
"The market's outlook, however, is encouraging," Yun continued. "Supply is expected to improve, which will give buyers more options and help tamp down record-high asking prices for existing homes."
The Existing-Home Sales data measures sales and prices of existing single-family homes for the nation overall, and gives breakdowns for the West, Midwest, South, and Northeast regions of the country. These figures include condos and co-ops, in addition to single-family homes.
