Home Prices Hit Record High as Sales Decline In The US

In May, Home sales witnessed an accelerated demand, resulting an excessive price hike due to shortage of properties and low-priced borrowing rates. The price hike marked a record high within last two decades.

On Tuesday, the National Association Of Realtors stated, for the first time in May, the median of existing-home sale prices topped $350,000. Compared to last year the figure elevated by 24%. Similar to the year 1999, NAR recorded this event as the most significant year-over-year price increase.

Sources from the print media said, “Sales prices have been climbing sharply since last summer when lockdowns related to the COVID-19 pandemic eased across the country, and many people rushed to find more space and bigger homes. Whereas others, working from remote seized on the chance to move to a less expensive city.”

Total housing inventory was 1.23 million units by the end of May, indicating that it was higher by 7% from April, however, 20.6% lower in comparison to last year.

Bottom Line: The rise in existing home prices is leading to a decline in the rate of home sales. NAR reported existing-home sales had fallen in the last month, compared to April. This occurrence marked the fourth straight month of diminishing sales.

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