Existing Home Sales Up in May

There is good news in the housing market – existing home sales were up in May by 0.8% month-over-month to a seasonally adjusted annual rate of 4.03 million, according to the National Association of Realtors (NAR). However, last month also saw a 0.7% year-over-year decline from the 4.06 million recorded in May 2024.

Month-over-month sales were up in the Northeast, Midwest and South, but not the West. Year-over-year, sales progressed in the Northeast and Midwest but contracted in the South and West.

The sales increase was helped by a wider selection of properties – 1.54 million units in May, up 6.2% from the previous month and up 20.3% from one year earlier. There was a 4.6-month supply of unsold inventory, up from 4.4 months in April and 3.8 months in May 2024.

The median existing home price for May was $422,800, up 1.3% from the $417,200 price set one year earlier. Last month’s price set a record high for the month of May and was the 23rd consecutive month of year-over-year price increases.

“The relatively subdued sales are largely due to persistently high mortgage rates. Lower interest rates will attract more buyers and sellers to the housing market,” said NAR Chief Economist Lawrence Yun. “Increasing participation in the housing market will increase the mobility of the workforce and drive economic growth. If mortgage rates decrease in the second half of this year, expect home sales across the country to increase due to strong income growth, healthy inventory, and a record-high number of jobs.”