Despite these headwinds, housing demand remains very strong, and sales last month were still much higher than in May 2019, said Joel Kan, AVP of economic and industry forecasting at the Mortgage Bankers Association.
“The median sales price once again surged to a record high at $350,300. For context, the median price was around $295,000 in 2020 and just under $270,000 in 2019,” he said.
Kan also highlighted the positive market outlook on supply.
“One positive development was the 7% increase in for-sale inventory, which should slightly help price conditions. However, the stagnating first-time buyer share at 31%, along with the rapidly increasing median sales price, are signs that affordability is an ongoing challenge at the lower end of the market,” Kan said.
Total housing inventory amounted to 1.23 million units at the end of May. Unsold inventory sits at a 2.5-month supply, slightly up from April’s 2.4% supply but down from 4.6-months a year ago.