Sales of previously owned homes were essentially flat in May compared with April, according to the National Association of Realtors. Though sale prices have continued to rise, sales were still 20.4% lower than the previous year.
The slow spring sales pace is a combination of still high prices, elevated mortgage rates and a critical shortage of homes for sale. The pull between strong demand and tight supply is keeping the market competitive. Nearly a third of properties sold above list price. The start of the summer housing season is shaping up much like the spring, with slower sales due to lack of supply.