President Biden’s policies are destroying the entire real estate sector. For consumers, home sales continue to decline no matter how many times Biden and his officials all lie to the public. The fact is it is now twice as expensive to have a mortgage for the average homeowner, since Biden took office.
Sales of previously owned homes continued their downward trend for the third consecutive month in May, even as home prices reached unprecedented levels. The latest data reveals that year-over-year sales dropped by 2.8%, with a monthly decrease of 0.7% from April to May, resulting in a seasonally adjusted annual rate of 4.11 million units.
BREAKING: Pending US Home Sales dropped to 72.3 in April, lowest reading since the beginning of the pandemic in 2020.
The index of contract signings, a leading indicator for US housing, fell by 7.7% last month which is the largest decline since February 2021.
Pending home sales… pic.twitter.com/7HXOyDUmF9
— The Kobeissi Letter (@KobeissiLetter) May 31, 2024
The sustained high interest rates, hovering around 7%, have exacerbated affordability issues for potential homebuyers, intensifying market challenges. Lawrence Yun, the chief economist at the National Association of Realtors, expressed disappointment at the recent press briefing, noting, “I thought we’d see a recovery this spring. We have not seen it.”
Geographically, the sales dynamics varied. The Midwest, known as the most affordable region based on various metrics, witnessed an increase in home sales. In contrast, sales remained unchanged in three of the four US regions, with only the South experiencing a monthly decline.
🚨 Just in:
US existing home sales fell for the 3rd straight month in May
Meanwhile median home prices hit a new high pic.twitter.com/ocBe5ziUvz
— Michael Burry Stock Tracker ♟ (@burrytracker) June 21, 2024
The inventory of available homes saw a near 7% increase to 1.28 million units in May from April, marking the highest supply level in over four years—a 3.7-month supply at the current sales rate. This is a nearly 19% increase compared to the same period last year.
Yun highlighted that life changes, such as retirement relocations, growing families needing larger spaces, and job-related moves, are driving some homeowners to list their properties. Despite this uptick in listings, inventory levels remain significantly lower than the pre-pandemic period, which typically saw between 1.8 million to 2.3 million units on the market before 2019.
🇺🇸 US HOME SALES SLUMP CONTINUES AMID RECORD PRICES
➡️ Existing home sales in the US fell for a third consecutive month in May, down 0.7% to a seasonally adjusted annual rate of 4.11 million units.
➡️ Median home prices reached a new record high of $419,300 in May, a 5.8%… pic.twitter.com/AigaR7aj0v
— Agustin Lorenzo (@nitsugalorenzo) June 21, 2024
The median home price surged to a new record of $419,300, an almost 6% increase from the previous year and the strongest price appreciation seen since October 2022. This marks the eleventh consecutive month of year-over-year price increases.
Properties are also moving relatively quickly, staying on the market for an average of 24 days in May—two days less than in April, though still longer than last May’s average of 18 days. While the market appears softer on an annual basis, the current pace under 30 days still indicates a fairly brisk turnover rate.
Remarkably, nearly one-third of homes sold for more than their listed price, attracting between two to three offers on average. Yun described this as a “somewhat of a strange phenomenon,” where despite low sales activity, the competition among buyers remains fierce, pushing prices to record highs.
Major Points
- Sales of previously owned homes fell for the third consecutive month in May, with a year-over-year decrease of 2.8%.
- High interest rates around 7% are exacerbating affordability challenges for homebuyers.
- The Midwest was the only region to see an increase in home sales, while inventory levels rose nearly 7% to 1.28 million units.
- The median home price hit a record high of $419,300, marking an almost 6% annual increase.
- Despite the overall sales decline, nearly one-third of homes sold above their listing price, reflecting a competitive market.
RM Tomi – Reprinted with permission of Whatfinger News
