U.S. sales of previously owned homes dropped in May by more than forecast to the lowest level since October 2010 as the coronavirus pandemic sent demand skidding along with the rest of the economy.
Closing transactions decreased 9.7% from the prior month to an annualized pace of 3.91 million, data from the National Association of Realtors showed Monday. The median forecast in a Bloomberg survey of economists called for a 4.09 million rate.
The third straight monthly decline likely reflects the worst of the pandemic-related downturn in residential real estate. While millions of job losses diminish the odds that sales will soon rival February’s 13-year high, home-purchase applications have spiked recently in part because of record-low mortgage rates.
“Just looking at the housing sector itself, it looks to be a V-shaped recovery,” Lawrence Yun, NAR’s chief economist, said on a call with reporters. “For the rest of the economy, it may not be a V-shape.”
50,428 in BrazilMost new cases today
-8% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.047 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
-2.3% Global GDP Tracker (annualized), May