The sale of new homes fell in May by 5.9%, larger than economists anticipated. The median price of a new home sold in May rose to $374,400, up 18.1% from a year ago.

Even with the sales decline, the median price of an existing home sold last month hit a record $350,300, 23.6% higher than the median price a year ago.

While sales are slowing, the housing market remains hot. Homes that do hit the market often get multiple offers far exceeding the listing price. The demand has been fueled by the shortage of available properties and by low mortgage rates, reflecting efforts by the Federal Reserve to use low rates to help lift the economy out of the pandemic-triggered recession.

See full article from Arkansas Business here.