Pending home sales in May experienced a 3.8% month-over-month increase and a 4.8% year-over-year upswing, according to data from the National Association of Realtors (NAR).
Month-over-month and year-over-year pending home sales were up in all four regions (Northeast, Midwest, South and West). Among the 50 largest metro areas, the most significant annual increases in pending home sales were recorded in Kansas City (+20.1%), San Antonio (+15.7%), Minneapolis-St. Paul (+13.9%), Miami-Fort Lauderdale-West Palm Beach (+11.4%), and Louisville (+11.2%).
“A late spring buyer rush—even with mortgage rates not budging—is an indication of pent-up housing demand and consumers’ acceptance of above-6% mortgage rates as the new normal,” said NAR Chief Economist Lawrence Yun. “The inventory-constrained Northeast region, which has seen faster home price growth but slower home sales for several months, is now showing more buyer contract signings. More supply is needed to help moderate home price growth. Going forward, falling oil prices will help lower mortgage rate. But declines will be modest given sizable borrowing by the federal government and strong AI investment spending by tech companies.”
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