Home sales are slowing as climbing prices and a shortage of houses limit consumers.

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Sales of houses within the United States fell for the fourth consecutive month in May as a sharp rise in prices and a shortage of houses on the market led to a slowdown within the market.

Existing home sales fell 0.9 percent in May from April, the National Association of Realtors mentioned Tuesday, with the median sales worth climbing almost 24 % from a year earlier to a file $350,300.

Home sales in May have been almost 45 % greater than they have been a year in the past as consumers proceed to depart cities in search of extra space and higher work-from-home situations. That spike in demand has exacerbated a shortage in housing provide that was already drawback earlier than the pandemic.

Economists don’t count on the dynamics to shift anytime quickly.

“There’s so many factors with limited supply that it’s hard to imagine a huge increase in supply any time soon,” mentioned Nancy Vanden Houten, lead economist at Oxford Economics. “The housing market has been suffering for many years from a shortage of homes for sales and that’s only gotten worse as the pandemic created a demand for housing.”

About 1.23 million beforehand owned houses have been on the market in May, a 20.6 % decline from a year in the past, the report mentioned.

“Lack of inventory continues to be the overwhelming factor holding back home sales, but falling affordability is simply squeezing some first-time buyers out of the market,” Lawrence Yun, the Realtor affiliation’s chief economist, mentioned in a assertion.

Realtors additionally cited under-construction and a lack of investment for brand new houses as some of the chief elements for rising residence prices.

Soaring demand for trip houses can be fueling a spike in prices, particularly in Florida, Maryland, Massachusetts, Michigan and North Carolina, the report confirmed.

From January to April, trip residence sales jumped 57.2 % year-over-year, in keeping with the 2021 Vacation Home Counties Report.

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