Existing Home Sales Fell to the Lowest Level Since June 2020

Sales of existing homes decreased 3.4 percent in May, to a 5.41 million seasonally adjusted annual rate. That is the fourth consecutive monthly decline and leaves the selling pace at the lowest level since June 2020 following the lockdown recession (see first chart). Sales were down 8.6 percent from a year ago.

Sales in the market for existing single-family homes, which account for about 89 percent of total existing-home sales, dropped 3.6 percent in May, coming in at a 4.80 million seasonally adjusted annual rate (see first chart). From a year ago, sales were down 7.7 percent. Single-family sales also fell for the fourth consecutive month and were at their slowest pace since June 2020.

The single-family segment saw sales decline in three of the four regions. Sales fell 6.0 percent in the West, 5.7 percent in the Midwest, and 2.7 percent in the South, the largest region by volume while sales were up 1.8 in the Northeast, the smallest region by volume. Measured from a year ago, sales were down in all four regions (-10.5 percent in the West, -9.5 percent in the Northeast, -7.2 percent in the Midwest, and -6.2 percent in the South).

Condo and co-op sales fell 1.6 percent for the month, leaving sales at a 610,000 annual rate for the month versus 620,000 in April (see first chart). From a year ago, condo and co-op sales were off 15.3 percent and were at their slowest pace since July 2020.

Condo and co-op sales were down in one region in May, falling 3.4 percent in the South and were unchanged in the other three regions.  From a year ago, sales were down in all four regions (-22.6 percent in the South, -11.1 percent in the Midwest, -8.3 percent in the Northeast, and -6.7 percent in the West).