MNI BRIEF: US May Existing Home Sales Pace Falls 0.7% To 4.11M

U.S. sales of existing homes slipped 0.7% to a seasonally adjusted annual rate of 4.11 million in May, the National Association of Realtors said Friday, in line with market expectations. Sales have declined 2.8% from last year.

The national median home price was up 5.8% over the last year to USD419,300, the highest on record and the eleventh consecutive month of annual gains. The existing home price jumped 3.1% from the previous month.

The inventory of unsold existing homes grew 6.7% from the previous month to 1.28 million at the May, and that may lead to some price cooling and growth in sales going forward, NAR chief economist Lawrence Yun told reporters. Higher interest rates and a higher-for-longer Federal Reserve will continue to squeeze housing, Yun said. (See: MNI INTERVIEW: Fed Might Hold Longer Than Market Thinks-Bair)