Existing home sales during May increased by 3.2% month-over-month and year-over-year, according to data from the National Association of Realtors (NAR).
Month-over-month sales increased in the Northeast, Midwest and South, and were unchanged in the West. Year-over-year sales rose in the Midwest, South, and West, and fell in the Northeast.
NAR noted the total housing inventory last month was 1.55 million units, up 3.3% from April and up 0.6% from May 2025. There was a 4.5-month supply of unsold inventory, no change from the prior month and down slightly from 4.6 months one year ago.
The median sales price in May for all housing types was $429,300, a 1.3% increase from one year ago ($423,700). May marked the 35th consecutive month of year-over-year price increases.
NAR’s Housing Affordability Index registered at 105.6, up from 97.5 one year earlier. Year-over-year, affordability improved across all regions.
“More Americans are on the move, with home sales rising to the highest level since December. This is great news for the housing market and the economy,” said NAR Chief Economist Lawrence Yun. “Improving affordability is helping drive this momentum. Even with mortgage rates ticking up compared to earlier in the year, they remain lower than a year ago and are essentially at the long-term historical average. Income gains are also outpacing home price growth by a small margin in most parts of the country.”
Yun added, “The new record-high May home price reflects solid fundamentals for homeowners and ongoing supply constraints. Only 1% of all home sales involved a foreclosure or an underwater situation in which the sale price could not cover the outstanding mortgage balance. This shows that homeowners are on solid financial footing. Increased home sales mean more economic activity — lawn care, furniture purchases, moving services, mortgage originations and other related business activities all get a boost.”
0 Comments