Summary
The housing market slowed down slightly in May, and the number of homes for sale remains relatively low compared to pre-pandemic levels.
For the first five months of 2024, the inventory of homes actively for sale was at its highest level since 2020. The inventory is slowly increasing, approaching normal levels.
Report
The housing market slowed down slightly in May, as mortgage rates increased due to persistent inflation, according to realtor.com’s May housing data. Although the median list price across the country remained unchanged from May 2023, there was a 3.8% rise in the price per square foot for homes. Although the housing market currently favors sellers, it is anticipated to become more of a buyer’s market if mortgage rates continue to decrease and the inventory of homes for sale rises.
Meanwhile, pre-pandemic home buyers are poised to make a substantial profit, with a 37.5% increase in median home prices since May 2019. The number of homes for sale is growing. Although there is an improvement in the number of homes for sale, it remains relatively low compared to pre-pandemic levels.
In May, the total number of homes for sale increased by 35.2% compared to May 2023, continuing a streak of seven months of annual inventory growth. However, the number of newly listed homes in May decreased slightly, but still surpassed May 2023 numbers. For the first five months of 2024, the inventory of homes actively for sale was at its highest level since 2020.
The inventory is slowly increasing, approaching normal levels.
In May, like the three previous months, homes in the $200,000 to $350,000 range saw the highest growth in inventory, increasing by 46.6% compared to May 2023 and surpassing April’s 41% growth rate. Home listings increased by 20.9% compared to May 2023, marking the sixth consecutive month of annual growth. The national median list price increased seasonally to $442,500 in May and remained relatively stable compared with May 2023.
On average, houses remained on the market for 44 days, which is one day longer than in May 2023, but eight days shorter than before the COVID-19 pandemic. Despite more homes being available for sale, they still sold faster than before the pandemic.
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