United States sales of previously owned homes fell in May lower than projected to the lowest level since 2010 as COVID-19 has dwindled the demand for homes. Closing sales have fell 9.7% from the month before to an annual pace of 3.91 million as noted by data from the National Association of Realtors. The housing market may rebound as home purchase loan applications have risen due to low mortgage rates as there were millions of job losses due to quarantine instructions by the government & state. “Just looking at the housing sector itself, it looks to be a V-shaped recovery,” Lawrence Yun, NAR’s chief economist, said on a call with reporters. “For the rest of the economy, it may not be a V-shape.”
Median home prices increased 2.3% as inventory rose 6.2%. Existing home sales fell in May, 8% in the south, 10% in the Midwest, 13% in the Northeast and 8% in the West. The co-op market and condominium market was affected the most as salesfell 12.8% in May to an annual rate of 340,000, down almost 25% from a year ago. “There could be a permanent change about the preference for the suburbs and single-family homes not only because of during this pandemic period but more importantly the permanent change” to work from home, Yun said.