Existing home sales plunged in May, according to the National Association of Realtors. However, some Realtors expect that this drop may represent a bottom in the market.
For May, sales of existing homes fell by 9.7% from in April to a seasonally adjusted annualized rate of 3.91 million units. On an annual basis, sales were down 26.6%, the largest annual decline since 1982. At that time, interest rates were around 18%.
Also May saw the slowest sales pace since October 2010. Considering the current pandemic, it makes sense that sales would lag. At the same time, the supply of homes did not help, and more potential sellers are deciding to wait.
The median price of an existing home sold in May was $284,600, an increase of 2.3% from May 2019. This is also the smallest annual rise since February 2012, which is when the market had started to recover from the Great Recession.
On the other hand, the nation’s homebuilders seem to be gaining from the current lack of existing homes for sale. The National Association of Home Builders has an index measuring homebuilder sentiment, and this took a huge leap in June, back into positive territory and falling off a cliff in April.
Accordingly, builders have reported increased traffic in both sales and buyer traffic, even though some of this traffic is online and virtual.
24/7 Wall St.100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.