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New-home inventory rose to 444,000 homes in May from 437,000 homes in April, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported.
Meanwhile, existing-home sales slid 3.4% from April to a seasonally adjusted annual rate of 5.41 million, according to the National Association of REALTORS®.
Realtor.com’s updated 2022 forecast sees housing demand returning to pre-pandemic levels.
Nationwide, sales fell 8.5% annually and rose 5.8% monthly, as rising interest rates and home prices weighed on homebuyers’ purchasing power, RE/MAX said.
New-home completions rose during the month, however, with the increased inventory representing a rare bright spot in an otherwise gloomy government report.
Nationally, the index posted its highest annual increase ever.
With affordability reduced, some buyers are pulling back from the market forcing sellers to adjust their price expectations.
Nevertheless, home prices are expected to continue rising through the end of the year, according to the National Association of REALTORS®.
The rate of new single-family home sales fell 16.6% from March’s revised number, while the median sales price jumped to $450,600 from March’s revised median house price of $435,000.
The inventory of unsold homes increased in April, while the median existing-home sales price rose, according to the National Association of REALTORS®.