WASHINGTON – Existing home sales fell 3.8% in May to a seasonally adjusted annual rate of 4.81 million, the second straight monthly decline and the lowest number of sales since November, the National Association of Realtors reported Tuesday.
Sales in April were revised to 5.00 million from 5.05 million reported last month.
Severe weather in the Midwest in April led to fewer contract signings in May, dragging down the national sales number. May sales fell in every region except the West where sales were flat.
Economists expected 4.80 million home sales for the month, according to the median estimate from Thomson Reuters.
The median sales price increased for the third month in a row, gaining 3.4% to $166,500 in May from $161,100 in April. The median price was down 4.6% from a year ago.
There were 3.72 million existing homes for sale in May for a 9.3 months supply, the highest months supply since November.
NAR’s chief economist Lawrence Yun said he is expecting the months supply to “trend down” as sales pick up this summer.
It is “unlikely we will hit double-digit months supply this year,” Yun said.
He added that the May sales figure “may be the low point of the year.”
Distressed sales represented 31% of purchases and all-cash transactions were 30% of the May total. First-time buyers made up 35% of May sales and investors totaled 19%.
