Record-High Home Prices Stall U.S. Sales in May

Existing home sales declined for the third consecutive month in May, dropping 0.7% from April, as home prices hit a record high of $419,300. Elevated interest rates around 7% are exacerbating affordability challenges for buyers. The Midwest saw an increase in sales, while the South experienced a decline. Inventory rose to a 3.7-month supply, the highest in over four years, but remains below pre-pandemic levels. Despite the decline in sales, nearly one-third of homes sold above the listing price, indicating a competitive market.