US home prices fall by largest amount annually since December 2011 | CNN Business

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The median existing home price was $396,100 last month, down 3.1% from a year ago, marking the largest year-over-year price reduction since December 2011

. Sales of existing homes — which include single-family homes, townhomes, condominiums and co-ops — rose 0.2% from April to May. Annually, sales were down 20.4% from a year ago, and the seasonally adjusted annualized sales pace dropped from 5.4 million units a year ago to 4.3 million in May. Mortgage rates remain volatile — so far this year, average rates have ranged from 6.09% to 6.79%, but were fairly steady in April when some of the homes closed in May would have gone under contract.

While existing home sales are stifled by low inventory, home building has surged , which has resulted in new home sales activity reaching pre-pandemic levels, Yun said. Affordability remains a challenge amid low inventory A scarcity of newly listed homes left buyers wanting more during the couple of months prior to May when buyers were entering into contracts, said Danielle Hale, chief economist for Realtor.com. And a couple of data points worked in favor of those who closed in May.

 

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