New-home inventory rose to 444,000 homes in May from 437,000 homes in April, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported.  

The hit to affordability has lessened demand, eased price growth, slowed sales and boosted inventory

Dawn Ruffini, MAR president, said the biggest issue the market is facing is the shortage of houses. 

Meanwhile, existing-home sales slid 3.4% from April to a seasonally adjusted annual rate of 5.41 million, according to the National Association of REALTORS®. 

Realtor.com’s updated 2022 forecast sees housing demand returning to pre-pandemic levels.

Nationwide, sales fell 8.5% annually and rose 5.8% monthly, as rising interest rates and home prices weighed on homebuyers’ purchasing power, RE/MAX said.

New-home completions rose during the month, however, with the increased inventory representing a rare bright spot in an otherwise gloomy government report. 

Mortgage lending took a nose dive across the U.S. in the first quarter of 2022

Redfin economists say they expect the cooldown in budgets to lead to a cooldown in price growth over the next few months. 

Worsening affordability challenges are affecting first-time homebuyers

The shift comes at a great cost as rising mortgage rates continue to keep buyers out of the market.

Nationally, the index posted its highest annual increase ever.

With affordability reduced, some buyers are pulling back from the market forcing sellers to adjust their price expectations.

Nevertheless, home prices are expected to continue rising through the end of the year, according to the National Association of REALTORS®. 

The median asking rent in Boston broke $3,000 in April.

Real estate market activity is declining on Cape Cod as inventory continues to fall and the median sale price rises.