For the fourth consecutive month of an existing home, sales have dropped 0.9% in May because of short housing supply and strong buyer demand reported the National Association of REALTORS.According to NAR in spite of this, sales were up 44.6% year over year.

The median price for an existing home is now at $350,300.NAR Chief Economist Lawrence Yun said, in May the home sales fell moderately and are reaching pre-pandemic activity now.Home sales are being held back due to a lack of inventory, but some first-time buyers out of the market due to rising prices.Yun added the market looks encouraging because supply is expected to improve, giving buyers more options and help bring down record-high asking prices for the existing homes.The NAR’s May existing-home sales report shows:89% of homes sold were on the market for less than a month.

And properties sold in 17 days, last year they sold in 26 days.The median existing-home price was up 23.6% at $350,300 a year earlier it was $283,500.At the end of May, total housing inventory reached 1.23 million units, down 20.6% from this time in 2020.

At the current sales rate, the unsold inventory is at a 2.5-month supply.31% of sales consisted of first-time buyers down by 34% from last year.Individual investors and second-home buyers bought 17% of homes, up from 14% a year earlier.Less than 1% of foreclosures and short sales, which is 3% down from last year.Reference Source: Realtor Magazinehttps://www.compareclosing.com/mortgagenews/home-sales-to-relapse-soon/