May, 2024: US Home sales “crumble in May” on higher rates and record prices. - Reuters

 REUTERS Residential update key facts

US Home sales in May fell to the lowest levels in the past decade, according to Redfin as both SUPPLY and DEMAND remain sluggish.

See full article here. 

Housing affordability is at an ALL TIME LOW.

The number of home sales remain roughly 25% pre-pandemic levels, according to Redfin.

In May, 407k homes were sold. Only October 2023 and May, 2020 (the heart of COVID) recorded fewer sales.

Home sales dropped 2.9% from a year earlier while pricing rose 5.1% year over year.

New listings rose .3% month over month in May, and 8.8% from a year earlier.

Weitz: No surprise here. The key items I'm looking at are 1) 8.8% increase in inventory YOY. As I've said, that will be the primary leading indicator as to where this market is going. If that continues to rise, I fully expect the market forces to tread toward negative price pressure; 2) The 3rd lowest number of sales in the past 10 years with one of those months being the start of COVID where everyone was on lock down and clearly no sales were taking place. 

I'll echo my previous call that we are fast approaching a market top. I would expect this summer will end up being the top of the market for some time. This fall will be chaotic given the political climate with political and economic tensions becoming abundantly apparently. 

My info: 

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Scott Weitz

Scott@WeitzCommercial.com

Text: 206.306.4034