May Sees Record Low Home Listings and Sales Decline in Multiple States

The number of homes for sale in the US hit a record low in May, dropping 7.1% to 1.4 million, the lowest level since 2012, according to a report by Redfin. The supply of homes has been hit by rock-bottom mortgage rates, which have prompted many people to buy homes, and a drop-off in home building following the Great Recession in 2008. The shortage of homes is contributing to bidding wars in some areas, which is preventing prices from plunging even with the drop-off in buyer demand. However, Redfin's chief economist warned that prices still might fall if mortgage rates continue to rise.