U.S. home sales dropped to their lowest level in more than nine and a half years in May, strengthening expectations for a sharp contraction in housing market activity in the second quarter following disruptions caused by the COVID-19 pandemic.
The National Association of Realtors said on Monday existing home sales fell 9.7% to a seasonally-adjusted annual rate of 3.91 million units last month, the lowest level since October 2010. Last month’s sales reflected closings of contracts signed in March and April. Economists had forecast existing home sales would fall 3% to a rate of 4.12 million units in May.
Existing home sales, which make up about 90% of U.S. home sales, decreased 26.6% on a year-on-year basis in May, the largest annual decline since 1982.
