Pending Home Sales Edge Up in May Amidst Record Lows and Rising Costs

May Pending Home Sales Data

• 📈 Pending home sales in May saw a slight increase but remain at historically low levels.
• ⚠️ The pending sales index is near its lowest point in 24 years, comparable to the pandemic-induced drop in April 2020.
• 📊 This minimal monthly gain occurred despite rising mortgage rates and a significant increase in homes available for sale compared to the previous year.

New Home Sales and Builder Challenges

• 🏠 Data on newly built home sales was considerably worse, even with a high supply of new homes.
• 💰 New homes are generally more expensive than existing ones, and builders are not focusing on entry-level properties.

Rising Cost of Home Ownership

• 💸 Nearly a quarter of homeowners are cost-burdened, spending over 30% of their income on housing and utilities.
• 📈 Home prices have surged by 60% since 2019, insurance premiums are up 57%, and property taxes have increased by 12%.
• 💰 The median home price is now five times the national median income, far exceeding the affordability benchmark of three times income.