Despite record low mortgage rates, soaring mortgage applications, and a modest rebound in new home sales, existing home sales were expected to tumble further in May.
April's collapse was the largest since July 2010's expiration of the first-time homebuyers credit, and May saw the plunge continue, falling 9.7% MoM (against expectations of a 5.6% MoM decline)
Source: Bloomberg
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. But sales of $1mm-plus home crashed...
But the notable trend of migration from cities to suburbs is clear:
“Relatively better performance of single-family homes in relation to multifamily condominium properties clearly suggest migration from the city centers to the suburbs,” Yun said.
“After witnessing several consecutive years of urban revival, the new trend looks to be in the suburbs as more companies allow greater flexibility to work from home.”
And second-home buyers surged...
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.
May's decline pushed the existing home sales SAAR to its lowest level since 2010...
Source: Bloomberg
Regional Breakdown
Sales for May decreased in every region from the previous month’s levels. Median home prices grew...