10:54 AM EDT, 06/14/2024 (MT Newswires) -- Redfin (RDFN) said Friday that US home sales dropped 2.9% in May from a year earlier to one of the lowest levels on record amid soaring prices.

On a seasonally-adjusted basis, the number of homes sold fell 1.7% in May from the prior month to 407,959, the real estate brokerage said.

The median home sale price in May was at a record-high $439,716, up 5.1% from a year earlier and 1.6% higher than the April level, it said.

"Sales are sluggish because high homebuying costs are making both house hunters and prospective sellers skittish. And with so few homes for sale, buyers in some markets are getting into bidding wars, which is helping push home prices to record highs," Redfin Senior Economist Elijah de la Campa said.

Mortgage rates are also rising, with the average 30-year-fixed rate hitting 7.06% in May, up from 6.99% a month earlier and 6.43% a year ago, the company said.

Mortgage rates are expected to slowly tick down and may help boost sales later this year, it said.

Shares of Redfin slumped nearly 3% in recent trading.

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