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NAR: Existing-Home Sales Decreased to 5.41 million SAAR in May

by Calculated Risk on 6/21/2022 10:11:00 AM

From the NAR: Existing-Home Sales Fell 3.4% in May; Median Sales Price Surpasses $400,000 for the First Time

Existing-home sales retreated for the fourth consecutive month in May, according to the National Association of Realtors(R). Month-over-month sales declined in three out of four major U.S. regions, while year-over-year sales slipped in all four regions.

Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 3.4% from April to a seasonally adjusted annual rate of 5.41 million in May. Year-over-year, sales receded 8.6% (5.92 million in May 2021).

Total housing inventory registered at the end of May was 1,160,000 units, an increase of 12.6% from April and a 4.1% decline from the previous year (1.21 million). Unsold inventory sits at a 2.6-month supply at the current sales pace, up from 2.2 months in April and 2.5 months in May 2021.
emphasis added

Click on graph for larger image.

This graph shows existing home sales, on a Seasonally Adjusted Annual Rate (SAAR) basis since 1993.

Sales in May (5.41 million SAAR) were down 3.4% from the previous month and were 8.6% below the May 2021 sales rate. Sales in April were revised down.

The second graph shows nationwide inventory for existing homes.


According to the NAR, inventory increased to 1.16 million in May from 1.03 million in April.

Headline inventory is not seasonally adjusted, and inventory usually decreases to the seasonal lows in December and January, and peaks in mid-to-late summer.

The last graph shows the year-over-year (YoY) change in reported existing home inventory and months-of-supply. Since inventory is not seasonally adjusted, it really helps to look at the YoY change. Note: Months-of-supply is based on the seasonally adjusted sales and not seasonally adjusted inventory.

Inventory was down 4.1% year-over-year (blue) in May compared to May 2021.

Months of supply (red) increased to 2.6 months in May from 2.2 months in April.

This was close to the consensus forecast. I’ll have more later.

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