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Existing home sales edged up 0.8% in May to a seasonally adjusted annual rate (SAAR) of 4.03 million, according to the National Association of Realtors via CNBC. That’s a surprising month-over-month gain in a market still grappling with elevated rates and cautious buyers. Here’s a breakdown of the key takeaways:
- Sales trends:
- Nationally, sales fell 0.7% year-over-year (down from 4.06 million in May 2024).
- Regionally, sales increased in the Northeast (+4.2%), Midwest (+2.1%), and South (+1.7%), but fell sharply in the West (–5.4%).
- Inventory and Prices:
- Total inventory rose to 1.54 million homes, up 6.2% from April and 20.3% year-over-year.
- Median single-family home price: $427,800 (+1.3% YOY)
- Median condo price: $371,300 (+0.7% YOY)
- YOY median price trends by region:
- West: $633,500 (+7.1%)
- Northeast: $513,300 (+3.4%)
- South: $367,800 (+0.7%)
- Midwest: $326,400 (+0.5%)
MY TAKE
Existing home sales were a positive surprise, notching a small gain in May despite contracts being signed during a period of heightened uncertainty. But make no mistake — this year’s housing season is still softer than last year’s. Sales remained down year-over-year, even as total dollar volume rose 1%, driven by higher average prices. Strength is concentrated in the upper end of the market. Sales rose only in the $750K–$1M range, while $1M+ sales declined. This reflects where inventory is more available and where buyers have leverage to negotiate. Looking ahead, Zillow now projects 4.14 million existing home sales in 2025, a modest 1.9% increase over this year. Higher inventory levels are giving buyers more leverage and may help nudge sales higher as the year progresses.
P.S. Speaking of Zillow ... Abundance Real Estate is in the fortunate position of being chosen by Zillow to be their 'ZILLOW PARTNER' in the Temecula Valley and San Diego North County. Zillow refers buyers and sellers to us. Abundance does NOT purchase customer data from Zillow. Zillow chose Abundance Real Estate as their local Real Estate Partner because we are in the top 1% for sales volume and the top 1% for Client Satisfaction.
P.P.S. This is my personal cell phone number and you can reach me personally at any time between 7 AM and 8 PM six days a week ... 951-760-3833.
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