Prices by region

Sales of previously existing homes dropped 3.4% in May, according to NAR data.

"Further sales declines should be expected in the upcoming months given housing affordability challenges from the sharp rise in mortgage rates this year," Yun said.

“Nonetheless, homes priced appropriately are selling quickly and inventory levels still need to rise substantially — almost doubling — to cool home price appreciation and provide more options for home buyers.”

The West topped all U.S. regions in having the highest median home prices at $633,800, an increase of 13.3% from May 2021.

The Northeast had the second highest median home prices at $409,700, representing a 6.7% rise from one year ago.

The median price in the South was $375,000, a 20.6% jump from one year ago. The NAR noted that for the ninth consecutive month, the South recorded the highest pace of price appreciation in comparison to the other three regions.

Meanwhile, the median price in the Midwest was $294,500, up 9.5% from one year before.

Simply add Capital One Shopping to your browser, and shop like normal. This free tool does the work for you.

Install Capital One Shopping

No change in distressed sales

With the U.S. already reporting a negative GDP for Q1, coupled with 40-year high inflation, experts are warning of an incoming recession that could put more financial strain on homeowners trying to make mortgage payments.

For now, NAR’s May data shows distressed sales — foreclosures and short sales — represent less than 1% of all sales. That remains unchanged from the previous month and a year ago in May 2021.

But there are slight changes elsewhere.

NAR’s data showed that first-time buyers were behind 27% of sales in May, down from 28% in April and down from 31% in May 2021.

“Declining home purchases means more people are renting, and the resulting rent price escalation may spur more institutional investors to buy single-family homes and turn them into rental properties — placing additional financial strain on prospective first-time homebuyers,” NAR president Leslie Rouda Smith said in a statement.

“To counter this trend, policymakers should consider incentivizing an inventory release to the market by temporarily lowering capital gains taxes for mom-and-pop investors to sell to first-time buyers.”

Here's how to save up to $700/year off your car insurance in minutes

When was the last time you compared car insurance rates? Chances are you’re seriously overpaying with your current policy.

It’s true. You could be paying way less for the same coverage. All you need to do is look for it.

And if you look through an online marketplace called SmartFinancial you could be getting rates as low as $22 a month — and saving yourself more than $700 a year.

It takes one minute to get quotes from multiple insurers, so you can see all the best rates side-by-side.

So if you haven’t checked car insurance rates in a while, see how much you can save with a new policy.

About the Author

Dina Al-Shibeeb

Dina Al-Shibeeb

Staff Writer

Dina Al-Shibeeb is an award-winning journalist with hyperlocal and international experience in various news formats. She began her reporting career covering the Arab Spring and its aftermath for a Dubai-based news station. She has since worked in Canadian media, covering municipal affairs in Vaughan, Ont., for Metroland Media. Her work has also appeared at the Toronto Star.

What to Read Next

Disclaimer

The content provided on MoneyWise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.