Home sales fell 8.5% year over year and rose 5.8% month over month in May, as rising interest rates and home prices weighed on homebuyers’ purchasing power, RE/MAX said in its National Housing Report.
The average close-to-list-price ratio of the 51 metro areas surveyed was 103.3%, down 0.2% from last month but up 1.6% from last year. The ratio represents the average value of the sales price divided by list price, and any number over 100% means the home sold for more than asking.
The average days on market totaled 23, down three days from April and two days from a year earlier.
The number of homes for sale in May rose 16.3% month over month and 2.2% year over year. Months’ supply of inventory rose to 0.9 from 0.8 in April and fell from 1 in May 2021.
“A decline in home sales isn’t entirely unexpected given the higher mortgage-rate environment, but the gains in inventory are welcome news for buyers who are now starting to see a few more listings come onto the market during their home search,” RE/MAX President and CEO Nick Bailey said in a press release. “Affordability remains a concern, but homebuyers are regaining some control, which has been long overdue.”