U.S. home sales fell for a fourth straight month in May as record-high prices amid low inventory frustrated potential buyers, a trend that …
U.S. home sales fell for a fourth straight month in May as record-high prices amid low inventory frustrated potential buyers, a trend that could persist for a while, with builders unable to deliver more houses because of expensive lumber. The decline in sales reported by the National Association of Realtors on Tuesday was concentrated in the single-family housing segment, which benefited from a migration from cities as millions of Americans sought more spacious accommodations for home offices and schooling during the COVID-19 pandemic. Sales are retreating back to their pre-pandemic levels, indicating that the tailwind from the virus is diminishing. “It’s becoming clear that record-high price growth and an enduring shortage of available homes are beginning to hinder would-be homebuyers,” said Matthew Speakman, an economist at Zillow. “Sales volume continues to struggle to regain the momentum it built late last year.” Existing home sales dropped 0.9 percent to a seasonally adjusted annual rate of 5.80 million units last month. Sales fell in the Northeast, West, and the densely populated South. They, however, rose in the Midwest, which is generally considered as having more affordable homes. Economists polled by Reuters had forecast sales would fall to a rate of 5.72 million units in May. Home resales, which account for the bulk of U.S. home sales, surged 44.6 percent on a year-on-year basis. The annual increase was, however, distorted by the plunge in sales in May 2020, when the economy was reeling from mandatory shutdowns of non-essential businesses to slow the first wave of COVID-19 cases.
