Inventory increases – a relief for tight supply conditions?
Inventory saw a significant improvement, the total housing stock is growing by 6.2% to 1.54 million units from April, increasing by 20.3% from last year. This is equal to the supply of 4.6 months, 4.4 months in April and above 3.8 months in May 2024. While still under pre-political criteria, growth provides some relief for buyers facing tight options.
However, average prices keep pushing upwards. The National Median current-hom price increased from 1.3% year-on-year to $ 422,800-a record high for the month of May. It marks the 23rd straight month of annual value profit. Regional, the Northeast led the Northeast to a price of 7.1%, while South led to a slight decline of 0.7% to $ 367,800.
Mixed regional and block performance
The sale was regionally uneven. West posted a 5.4% monthly drop and is now 6.7% below a year ago, while the Northeast and Midwest have recorded monthly benefits of 4.2% and 2.1% respectively. In terms of the segment, the sales of single-family increased to 1.1% month and a month to 3.67 million, while the sales of condo/co-op have fallen by 2.7% to 360,000 units.
The appearance of the investor increased, with 17% transactions from investors or other home buyers- from 15% in April. For the first time buyers were responsible for selling 30%, a dip by 34% in the earlier month, indicating affordable challenges. The average day on the market has come down from April 27 to 29 from April 29 to 29, indicating the buyer competition.
Market Outlook: Finely hosts of vigilance host
Minor sales and rising inventory suggests temporary recovery capacity. However, frequent high mortgage rates and elevated prices are widely upside down. The cost of borrowing must further reduce, NAR hopes that strong jobs and healthy domestic income improved fuel. For now, traders should look at the housing market as carefully – with reverse contingent on rate relief.
More information in our economic calendar.
