Housing prices rose commensurate with the temperature, but ongoing inventory issues will keep sales in check,
May's home-sale prices increased 3.6% year-over-year, representing the biggest annual increase in seven months. It's also a month-over-month rise of 3%. The median sales price now sits at $315,000.
Of the 85 largest housing markets in the country, six had year-over-year price drops, with the largest decrease coming in the heart of Silicon Valley.
Sales prices in San Jose, Calif., fell 6% compared with May 2018, followed by decreases of 2.5% for New York and 2.2% for Honolulu. The remaining three metro areas with negative growth also were in California — Orange County dipped 1.4%, while Los Angeles and Oakland edged down 0.8% and 0.7%, respectively.
"As
Inventory concerns —
"We haven't yet seen a commensurate increase in U.S. home sales, and I don't expect sales to increase substantially in the long run. That's because there still
Approximately 314,300 homes sold in May, a slight rise of 0.2% year-over-year and a 14.1% month-over-month ramp up for prime buying season. The available homes on the market also predictably grew to 890,300, an annual increase of 2.5% and a monthly gain of 5.1%.
Just over half the metro areas saw increased for-sale inventory compared to a year ago. San Jose set the pace here as well, with a 60.2% increase, while Seattle, at 45.8%, and Oxnard, Calif., at 37.6%, followed.