Existing home sales are down 0.7 percent to 4.110 million units at a seasonally adjusted annual rate after an unrevised 4.14 million units in April. The May sales level nearly matches the consensus of 4.10 million units in the Econoday survey of forecasters. May sales are down 2.8 percent year-over-year. Sales of existing single-family homes are down 0.8 percent in May to 3.71 million units after 3.74 million units in April, and down 2.1 percent compared to a year ago. Multi-unit home sales are unchanged at 400,000 in May from April and down 9.1 percent year-over-year.

Between elevated prices, higher mortgage rates, and lack of supply, sales of existing units remained soft. However, there may be some signs that sales will pick up in coming months.

NAR Chief Economist Lawrence Yun said,"Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months." He continued,"Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions."

The supply of homes available for sale is 3.7 months' worth in May, the highest since 3.8 months in June 2020, just before the housing boom that was a result of low rates and changing housing needs with the arrival of the COVID-19 pandemic. The median home price is up 3.1 percent to $419,300 in May from April up 5.8 percent year-over-year.

Homes coming on to the market are being snapped up quickly. The average number of days on the market in May is 24, down from 26 in April, but up from 18 in the year-ago month. First time homebuyers accounted for 31 percent of all sales compared to 33 percent in the prior month and 28 percent in May 2023.

After April's 4.14 and March's 4.22 million annualized rates, existing home sales in May are expected to hold at a 4.10 million rate.

Existing home sales tally the number of previously constructed homes, condominiums and co-ops in which a sale closed during the month. Existing homes (also known as home resales) account for a larger share of the market than new homes and indicate housing market trends.

This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as home resales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio.

Even though home resales don't always create new output, once the home is sold, it generates revenues for the realtor. It brings a myriad of consumption opportunities for the buyer.

Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, home resales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the existing home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.