WASHINGTON — US home sales fell for a fourth
straight month in May as record-high prices amid low inventory frustrated
potential buyers, a trend that could persist for a while, with builders unable
to deliver more houses because of expensive lumber.
اضافة اعلان
The decline in sales reported by the
National Association of Realtors on Tuesday was concentrated in the single-family housing segment,
which benefited from a migration from cities as millions of Americans sought
more spacious accommodations for home offices and schooling during the COVID-19
pandemic. Sales are retreating back to their pre-pandemic levels.
"It's becoming clear that record-high price growth and
an enduring shortage of available homes are beginning to hinder would-be
homebuyers," said Matthew Speakman, an economist at Zillow. "Sales
volume continues to struggle to regain the momentum it built late last
year."
Existing home sales dropped 0.9% to a seasonally adjusted
annual rate of 5.80 million units last month. Sales fell in the Northeast, West
and the densely populated South. They, however, rose in the Midwest, which is
generally considered as having more affordable homes. Economists polled by
Reuters had forecast sales would fall to a rate of 5.72 million units in May.
Home resales, which account for the bulk of
US home sales,
surged 44.6 percent on a year-on-year basis. The annual increase was, however,
distorted by the plunge in sales in May 2020, when the economy was reeling from
mandatory shutdowns of non-essential businesses to slow the first wave of
COVID-19 cases.
The median existing house price accelerated a record 23.6
percent from a year ago to an all-time high of $350,300 in May, with sales
remaining skewed towards bigger and more expensive homes.
US stocks were little changed by the data. The dollar was
steady against a basket of currencies. US Treasury prices were mixed.
Bidding wars
Single-family home sales, the largest segment of the housing
market, dropped 1.0% to a pace of 5.08 million units, the lowest since last
June. Sales of multi-family homes were unchanged, though they continue to
rebound as more people return to cities. At least 150 million Americans have
been fully vaccinated against COVID-19, allowing the economy to begin reopening
and companies to recall workers back to offices.
Housing supply was already tight before the pandemic. With
the public health situation brightening, there is cautious optimism that
inventory will improve. Some homeowners were reluctant to list their homes
because of fear of contracting the virus from potential buyers touring their
properties. Some elderly Americans likely delayed downsizing due to the
pandemic.
There were 1.23 million previously owned homes on the market
in May, up 7.0 percent from April and down 20.6 percent from one year ago.
While the monthly improvement in inventory is welcome, the supply gap could
take a long time to close.
The pandemic has disrupted labor supply at saw mills and
ports, causing shortages of lumber and other raw materials.
Though lumber
prices have eased from recent record highs, they remain exorbitant, limiting
builders' ability to ramp up construction of new homes. The government last
week reported a moderate rebound in homebuilding in May and a drop in permits.
At May's sales pace, it would take 2.5 months to exhaust the
current inventory, down from 4.6 months a year ago. A six-to-seven-month supply
is viewed as a healthy balance between supply and demand. Properties typically
remained on the market for 17 days in May, down from 26 days a year ago.
There are wide spread bidding wars, with institutional
buyers reported to be outbidding other buyers. First-time buyers accounted for
31 percent of sales in May, down from 34 percent a year ago. All-cash sales
made up 23 percent of transactions, up from 17 percent last May.
Economists do not believe another housing bubble is
developing, noting that the price surge is being mostly driven by a mismatch
between supply and demand, rather than poor lending practices, which triggered
the 2008 global financial crisis. But the rapidly rising prices could feed
inflation.
Eighty-nine percent of the homes sold in May were on the
market for less than a month.
Read more
Business
.jpg)
.jpg)
