Existing-home sales increased in May, rising 3.2% from April to a seasonally adjusted annual rate of 4.17 million, according to the National Association of Realtors (NAR) “Existing-Home Sales” report. Sales were also up 3.2% from one year earlier, marking the strongest pace since December. Activity improved in the Northeast, Midwest, and South from the previous month, while sales were unchanged in the West.
Inventory Gives Buyers More Choices
Housing supply continued to improve in May. Total inventory rose 3.3% from April to 1.55 million homes, representing a 4.5-month supply at the current sales pace. Inventory was also up 0.6% from May 2025. While supply is still below the five to six months typically associated with a balanced market, the increase gives buyers more room to compare options and negotiate.
Affordability Helps Drive Activity
Improving affordability helped bring more buyers into the market. The NAR Housing Affordability Index registered at 105.6 in May, up from 97.5 one year earlier, with all four regions showing year-over-year improvement. Lawrence Yun, chief economist for the NAR, pointed to mortgage rates remaining lower than a year ago and income growth slightly outpacing home price gains in many parts of the country.
Rates still matter, however. The average 30-year fixed-rate mortgage was 6.44% in May, up from 6.33% in April but below 6.82% one year earlier. Even small shifts in borrowing costs continue to influence buyer confidence and purchasing power.
Prices Reach a New May High
The median existing-home price reached $429,300 in May, up 1.3% from one year earlier. This marked the 35th consecutive month of year-over-year price gains and a record high for the month of May. Price growth remains modest compared with the rapid appreciation of recent years, but ongoing supply constraints continue to support values in many markets.
Buyer Activity Shows Renewed Confidence
Homes spent a median of 29 days on the market in May, down from 32 days in April but up slightly from 27 days one year ago. First-time buyers represented 35% of sales, up from 33% in April and 30% one year earlier. Cash sales held steady at 25% of transactions, while investors and second-home buyers accounted for 14%, down from 16% the previous month.
What This Means for Buyers and Sellers
May’s numbers suggest that buyers are responding when more inventory and slightly better affordability align. For buyers, additional choices can create opportunity, but preparation remains essential as well-priced homes continue to move. For sellers, stronger activity is encouraging, but pricing, presentation, and flexibility remain important as buyers compare more options.
Regional Sales Snapshot
Northeast: 460,000 existing-home sales (+2.2% MoM, -8% YoY) | Median Price: $534,900 (+4.2%)
Midwest: 1 million existing-home sales (+6.4% MoM, +2% YoY) | Median Price: $336,300 (+2.8%)
South: 1.96 million existing-home sales (+3.2% MoM, +5.9% YoY) | Median Price: $373,100 (+1.1%)
West: 750,000 existing-home sales (0% MoM, +5.6% YoY) | Median Price: $625,900 (-0.7%)
