The Existing Home Sales report measures sales and prices of existing homes, i.e. homes that are owned and occupied before coming onto the market. The data is gathered by the National Association of Realtors and highlights national averages as well as breakdowns for regional data.
May 2020 existing-home sales in the Northeast fell 13.0%, recording an annual rate of 470,000, a 29.9% decrease from a year ago. The median price in the Northeast was $327,900, up 7.8% from May 2019.
Despite what the experts say, it is my opinion that the Connecticut market will be as active as it has been in years once the COVID-19 pandemic resolves itself. The purchase activity levels I was seeing prior to COVID-19 were most encouraging and I quite frankly am amazed at the purchase activity I am in this unprecedented time.-John Burke
NATIONAL: The median existing-home price for all housing types in May was $284,600, up 2.3% from May 2019 ($278,200), as prices increased in every region. May’s national price increase marks 99 straight months of year-over-year gains.
Properties typically remained on the market for 26 days in May, seasonally down from 27 days in April, but equal to 26 days in May 2019. Fifty-eight percent of homes sold in May 2020 were on the market for less than a month.
First-time buyers were responsible for 34% of sales in May, down from 36% in April 2020 and up from 32% in May 2019. NAR’s 2019 Profile of Home Buyers and Sellers – released in late 20194 – revealed that the annual share of first-time buyers was 33%.
Individual investors or second-home buyers, who account for many cash sales, purchased 14% of homes in May, up from 10% in April 2020 and from 13% in May 2019. All-cash sales accounted for 17% of transactions in May, up from 15% in April 2020 and down from 19% in May 2019.
Distressed sales – foreclosures and short sales – represented 3% of sales in May, about even with April but up from 2% in May 2019.
Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, slumped 9.7% from April to a seasonally-adjusted annual rate of 3.91 million in May. Overall, sales fell year-over-year, down 26.6% from a year ago (5.33 million in May 2019).