Existing-homes rebounded nicely in May as more buyers navigated the headwinds of weaker affordability and limited listings in the affordable price range.
It’s very evident that supply this spring severely lags demand in many parts of the country. It’s a big reason why home prices continue to outpace incomes and reached a new peak high last month of $252,800.
Take a look at these additional eye-opening stats about how low inventory is affecting the market:
- Existing inventory is 8.4 percent below last May and has now decreased year-over-year for two straight months
- The median days on market was 27 days, which is the lowest since NAR began tracking in May 2011
- Fifty-five percent of homes sold within a month (also a new high since May 2011)
Will these conditions linger into the summer? NAR Chief Economist Lawrence Yun believes they will. “Several markets this summer will continue to see homes going under contract at this remarkably fast pace of under a month,” he said.
Check out the charts below for a recap of last month’s sales activity: