U.S. home sales fall as home prices hit record high
U.S. home sales fell for a fourth straight month in May as prices soared to a record high, frustrating potential buyers.
The National Association of Realtors said Tuesday existing home sales dropped 0.9% last month.
Shortages of lumber and other raw materials are limiting builders’ ability to ramp up construction. With inventory tight, bidding wars are rising, threatening to price some first-time buyers out of the market. The median existing home price accelerated a record 23.6% from a year ago to an all-time high surpassing $350,000 in May.
But economists don’t believe another housing bubble is developing because a mismatch between supply and demand, not poor lending practices, is behind the latest price surge.
