Home sales declines started to flatten in May, with 53 metro areas across the U.S. reporting an average drop of 3.9% from the previous month, according to RE/MAX’s National Housing Report.
Although the single-digit decline from the previous month is good news, home sales still lagged May of 2019 by 33.7%.
The median sales price was up 4.7% year-over-year to $272,000, but that’s down from the 5-year average increase of 5.4%.
Inventory also was down year-over-year by 25%, with only three cities reporting increases, according to the report.
“Not surprisingly, May sales were historically muted alongside increasingly pinched inventory as the full brunt of the pandemic likely manifested itself during the month,” Adam Contos, CEO of RE/MAX Holdings, Inc., said in a press release.
“We believe the spring selling season was largely deferred for several weeks. And, with home being the center of people’s lives this year, we could see the effect of pent-up demand play out in a significant way,” he added.
In Atlanta, year-over-year sales were down more than the national average at 35.8% and active inventory was also down 19.6%.
However, Kristin Jones, Broker/Owner of RE/MAX Around Atlanta, remains optimistic: “While overall year-over-year sales were down 35.8% in Atlanta, at RE/MAX Around Atlanta, pending sales are up, indicating a strong Q3 ahead.”
She noted that low inventory is good news for sellers, and interest rates are historically low, which is good news for buyers. “All in all, it is a great time to sell or buy real estate,” she said.
In addition, she says that in-town homes under $500,000 are selling quickly and above asking price due to first-time buyers and those looking to downsize.