US existing home sales drop as home values reach record high

Existing home sales in the United States decreased 0.7% from a month ago to a seasonally adjusted annualized rate of 4.11 million units in May.

The latter has been the lowest level since January and compares with 4.14 million units in April.

Meanwhile, the median sales price rose to a new record high of $419,300, the latest data showed.

“Home prices reaching new highs are creating a wider divide between those owning properties and those who wish to be first-time buyers. The mortgage payment for a typical home today is more than double that of homes purchased before 2020. Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months,” National Association of Realtors’ Chief Economist Lawrence Yun commented.

The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was last edging up 0.15% on the day to 105.811.