US home sales fell 0.4 per cent in May amid inventory crunch
WASHINGTON — U.S. existing home sales slipped 0.4 per cent in May, as the prolonged shortage of properties on the market is deterring home-buying.
The National Association of Realtors said Wednesday that homes sold at a seasonally adjusted annual pace of 5.43 million in May, the second straight monthly decline. Sales have tumbled 3 per cent over the past year, despite steady job growth that has boosted demand from would-be homebuyers as the unemployment rate has fallen to a multi-decade low of 3.8 per cent.
The housing market is caught in a vice grip of fewer sales listings and rising mortgage rates, both of which have made home ownership less affordable for many Americans.
The number of sales listings has dropped 6.1 per cent over the past year to 1.85 million. That forced would-be buyers to act quickly and sign contracts on average in just 26 days. It also pushed up home values as the median sales price in May rose 4.9 per cent from a year ago to $264,800.