Existing homes sales fell 0.4 percent month-over-month to a seasonally adjusted annual rate of 5.43 million after declining last month too, due to low inventory, according to the National Association of Realtors. The median existing home price in May 2018 was $ 264,800, a record high and up 4.9 percent from $ 252,500 May 2017, according to the data.
Year-over-year, the number of existing home sales also fell 3 percent, the third straight month of such a decline.
“Closings were down in a majority of the country last month and declined on an annual basis in each major region,” said Lawrence Yun, NAR’s chief economist. “Incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market.”