Existing-home sales rose 3.2% in May compared to April, reaching the highest level since December, according to data released Tuesday by the National Association of REALTORS®. The sales increase marks a reversal from April's mostly stagnant performance and signals that improving affordability is bringing buyers back into the market. Sales also posted a 3.2% annual increase compared to May 2025, giving real estate professionals more closed deals this spring.

The median existing-home price for all housing types climbed to $429,300 in May, the highest ever recorded for the month of May and a 1.3% increase from a year earlier. First-time buyers comprised 35% of existing-home sales in May, up from 30% a year ago. Inventory rose 3.3% compared to April but was up only 0.6% from a year ago, a much slower pace of growth than in recent months. About a quarter of buyers paid all-cash for their home purchase in May, and approximately a quarter of homes sold above list price. Homes sold faster last month, with the median time on market at 29 days compared to 32 days in April, and multiple offers remained common, with homes receiving an average of 2.3 offers.

Regional sales patterns varied significantly. The Midwest saw the largest jump in existing-home sales, with a 6.4% month-over-month increase and sales reaching an annual rate of 1 million. The South posted a 5.9% annual sales increase, reaching an annual rate of 1.96 million. The Northeast saw sales rise 2.2% month-over-month but remain down 8% annually, while the West held mostly stagnant at an annual rate of 750,000 but was up 5.6% year-over-year. Median prices ranged from $336,300 in the Midwest to $625,900 in the West, with the Northeast posting the largest annual price gain at 4.2%.

"More Americans are on the move, with home sales rising to the highest level since December," says Lawrence Yun, NAR's chief economist. The report attributes the sales momentum to improving affordability driven by mortgage rates in the mid-6% range—the 30-year fixed-rate mortgage averaged 6.44% in May, down from 6.82% in May 2025. Income gains have been slightly outpacing home-price growth lately in most areas of the country, according to Yun, with housing affordability seeing the biggest improvement over the past year in the West.

The report emphasizes that supply constraints continue to support prices even as more buyers enter the market. "The new record-high May home price reflects solid fundamentals for homeowners and ongoing supply constraints," Yun notes. Only 1% of all home sales involved foreclosure or an underwater situation, showing homeowners are on solid financial footing. Earlier NAR data showed the typical homeowner has accumulated about $128,000 in housing wealth over the past six years, helping more leverage sale proceeds for their next purchase. The combination of lower mortgage rates, rising incomes, and strong equity positions suggests buyers have more purchasing power than a year ago, even as competition for limited inventory keeps prices at record levels for this time of year.