Existing-home sales have taken a bit of a shot and a lack of inventory is being names as one of the two major factors. As a result of the low-inventory numbers, home prices have increased, adding to the difficulty for buyers.
"Contract closings declined 0.4% month-over-month to a 5.43 million annual rate (the estimate was 5.52 million), from a revised 5.45 million (the previous was 5.46 million)," according to National Mortgage News.
"The median sales price increased 4.9% year-over-year to a record $264,800. Inventory of available properties fell 6.1% year-over-year to 1.85 million, the lowest May in data."
The numbers point to a majority of purchases being made by buyers with a higher income. Buyers who are looking for more affordable homes are scaling back on the search for a new home as prices have jumped out of their budgets.
"Sales of lower-cost homes were down from a year ago, while homes priced $250,000 or more were up. NAR last month had said it expects inventories of new homes to increase later this year," according to the report.
So, while the market outlook is a bit bleak at the moment, experts are predicting some relief later on in the year. To learn more about the dismal existing-home sales numbers, click on the image above.