Housing

Home Sales Plunge in May

Douglas A. McIntyre

Published: June 15, 2024 5:33 am

Last Updated: June 17, 2024 7:10 am

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• Home sales had their worst May ever, driven by high mortgage rates and rising house prices.

Home sales had their worst May ever. High mortgage rates and rising house prices drove the drop. Redfin pointed out that there have been only two months in the last decade when sales were lower. Other data shows home prices at record prices.

Houses were for sale for record prices and were scarce. The median price of a home reached $439,716, up 5.1% year over year. Fixed-rate mortgages at 7.02% made prices even more difficult for buyers.

Prices soared in some markets. They were up 17.6% year over year in Anaheim, close to LA. They rose 15.1% in Cleveland, one of America’s least expensive home markets.

The markets with the largest price drops were Cape Coral, Fla., down 2.7%, Honolulu, down 2.1%, and Austin, down 1.1%. Honolulu is among the most expensive home markets in America.

Redfin Senior Economist Elijah de la Campa summed up the market: “Sales are sluggish because high homebuying costs are making both house hunters and prospective sellers skittish. And with so few homes for sale, buyers in some markets are getting into bidding wars, which is helping push home prices to record highs.”