Home Sales Retreat to Pre-Pandemic Levels
National home sales are falling from their pandemic-fueled highs as home buyers tighten up their budgets. “Home sales have essentially returned to the levels seen in 2019—prior to the pandemic—after two years of gangbuster performance,” says Lawrence Yun, chief economist for the National Association of REALTORS®.
Total existing-home sales—completed transactions for single-family homes, townhomes, condos, and co-ops—dropped 3.4% month over month in May, reaching a seasonally adjusted annual rate of 5.41 million. Compared to just a year ago, existing-home sales are down 8.6%.
With affordability challnges facing buyers as rising prices and rates continue to cast a cloud over the market, it is safe to say that a further sales decline should be expected in the upcoming months. Despite the decreases last month in home sales, prices remain strong. The median existing-home price exceeded $400,000 for the first time on record, reaching $407,600—up 14.8% from a median of $355,000 a year ago.
Melissa Dittmann Tracey. “Home Sales Retreat to Pre-Pandemic Levels.” Realtor Magazine, 21 June 2022, magazine.realtor/daily-news/2022/06/21/home-sales-retreat-to-pre-pandemic-levels.