The housing market threw a bit of a curveball in May, with resale condo sales taking a significant hit, dropping by a hefty 27% compared to the same month last year. This sharp decline caught many by surprise, especially since the broader housing scene showed mixed signals.
May’s housing market stunned with resale condo sales plummeting 27% year-over-year, a jarring dip amid a landscape of mixed signals.
Pending home sales, those listings already under contract, slipped by 2.5% year-over-year, hinting that buyers are still hesitant. Even with more homes on the market, folks just aren’t jumping in, likely spooked by stubbornly high mortgage rates that refuse to budge. Interestingly, however, new home sales ticked up a bit, reaching a seasonally adjusted annual rate of 623,000, showing that some parts of the market are holding their own.
Despite the sales slump, prices didn’t take a nosedive, which is a bit of a relief. The median price for existing homes climbed 1.3% to $422,800 in May, and new single-family homes sat at a median of $426,600. This steadiness, even with softer demand, comes down to solid job growth and rising incomes giving people a financial cushion. Notably, condo and co-op sales also reflected this resilience, with the median price rising to $371,300 median price despite the sharp decline in sales volume.
It’s not all doom and gloom—there’s a silver lining in these numbers. Inventory is also picking up, with actively listed homes jumping 31.5% year-over-year and unsold existing homes hitting 1.54 million, or a 4.6-month supply. That’s the highest since winter 2019, though still below pre-pandemic levels, offering buyers more choices at last. Additionally, homes are taking longer to sell, with the typical home spending 51 days on market in May, which signals a shift toward a more balanced market. This trend mirrors the broader rental market, where remote work trends have significantly altered housing preferences and demand patterns across the country.
Regionally, the picture varies quite a bit. The Northeast and Midwest saw some sales growth for existing homes, while the South and West took a harder hit, especially in resale condos. Local job markets and affordability issues play a big role here, with the West facing the steepest drops.
Looking ahead, there’s hope on the horizon—lower mortgage rates might come later this year, potentially sparking more deals. For now, though, economic uncertainty and inflation keep weighing on confidence. Still, with a strong labor market and growing inventory, the housing scene isn’t down for the count. Hang tight; a shift could be coming soon if conditions align just right.
