April was a strong month for U.S. home sales, but May was a sadder story.
Amid a surge in prices, single-family home sales fell 6.9% to a 673,000 annualized pace. The median sales price increased 8.8% from a year earlier to $342,200, the highest since December 2017.
Most of the sales drop involved homes priced below $300,000. Experts suggest that a shortage of affordable properties is hindering potential buyers, and that the effect of lower mortgage rates has flattened out.
Yet against this sobering backdrop, housing starts rose for the second straight month.
And if the news wasn’t already a mixed bag, add in the anomaly of a rise in purchase of yet-to-be-built homes versus a larger-than-usual inventory of completed homes.
Strange times indeed.
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Consider investing in a professionally managed portfolio of single-family homes? Please contact Harold Willig at firstname.lastname@example.org or 917-209-4452.
Harold Willig is the Manager of SpringView Investment Management, LLC, which he founded in 2012. Mr. Willig also served as HFZ Capital Group’s Chief Financial Officer and was responsible for the oversight of HFZ's Finance and Accounting team. He has over 16 years of finance and accounting experience.