May is historically one of the most actives months each year for home sales. Closings in May of 2022 were 8.5 percent lower year-to-year compared with May 2021. There was a 5.8 percent increase from April. This is according to the RE/Max National Housing Report for May 2022.
After a period of lower-than-average inventory, May saw the second consecutive month of inventory growth, making May the first month of 2022 to exceed inventory levels compared with one year prior.
The median sale price grew 1.2 percent to $430,000 from $425,000 in April and was 13.2 percent higher than the $380,000 recorded in May 2021. The average close-to-list price ratio in May was 103 percent, meaning homes sold for 3 percent more than the asking price. That compared with nearly 104 percent last month and 102 percent in May 2021.
Homes spent an average of 23 days on the market in May selling three days faster than in April, and two days faster than a year ago.
“A decline in home sales isn't entirely unexpected given the higher mortgage rate environment, but the gains in inventory are welcome news for buyers who are now starting to see a few more listings come onto the market during their home search,” RE/Max President and CEO Nick Bailey said. “Options in multi and single-family housing are there that weren't available just a few short months ago. Affordability remains a concern, but homebuyers are regaining some control which has been long overdue.”
President and Broker of RE/MAX Gold in the Bay Area, Tim Yee, expects inventory to continue to grow.
“It appears that the long-forecasted market shift has arrived in the Bay Area. Inventory is starting to increase, and the extraordinary rate of rising prices of the last few years seems to have mellowed somewhat,” Yee added. “This is not the dramatic change that some have predicted, but rather a cooling down of what was a sizzling market. Homes that are located in the prime areas are still seeing multiple offers and still selling over asking, but sellers for the most part are learning to moderate their expectations, and, in some areas, we are actually seeing some price reductions.”