Existing Home Sales Drop

Sales of existing homes in the U.S. dropped for the fourth straight month in May due to a very low supply of homes on the market. Existing home sales fell 0.9 per cent last month from April to a seasonally adjusted annualized rate of 5.8 million units, says the National Association of Realtors. The 5.8 million rate is modestly above pre-pandemic levels. Sales were 44.6 per cent higher than a year earlier, but that comparison is skewed massively given that the housing market basically shut down for about two months at the start of the pandemic. The market then rebounded dramatically last summer and remained strong for all of last year. Just 1.23 million homes were for sale at the end of May, a 20.6 per cent drop from a year earlier. At the current sales pace, that represents a 2½-month supply.