Glut of Homes and Condos Rises by 5% in May

June 28 — The latest in a steady string of depressing news for sellers of retirement communities continued this week. Sales of all types of existing homes and condos fell 10.3% in May from the year ago period, and median prices fell 2.1% (Source: National Association of Realtors). The worst news, for sellers, was that number of homes listed for sale increased to an 8.9 months supply. These increasing inventories were unwelcome for two reasons: a rising figure predicts slow sales ahead, and inventory levels rarely rise in May. Families with children often buy in this month so they can move over the summer.

Meanwhile the Commerce Department reported that new home construction also fell in May by 2.1%, putting additional dimension on the housing market’s poor health.
Source: https://precondo.ca/

The Wall Street Journal reported that David Resler, chief economist to Nomura Securities, wrote to clients that “falling prices and record inventories leave little doubt that the ‘correction’ in the housing market is nowhere near ending.” What this means for baby boomers, according to the ProductExpert, is that those hoping to purchase a condo or home in an active adult community over 55 is unclear. Viewed from rosy-tinted glasses, supplies are up, prices are down – therefore it should be a good time to shop. For those who tend to be pessimists, things can only get worse. If you are tempted, here is a link to list of the best retirement communities. National Association of Realtors. U.S. Commerce Department
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