U.S. existing home sales rise to fastest pace since December

Sales of previously occupied U.S. homes picked up in May, reaching the fastest pace since December even as mortgage rates and prices stayed elevated. The National Association of REALTORS® said existing-home sales rose 3.2% from April and 3.2% from a year earlier to a seasonally adjusted annual rate of 4.17 million units, a sign that demand has not vanished even under heavy affordability pressure.

The median existing-home price rose 1.3% from a year earlier to $429,300. Inventory increased 3.3% to 1.55 million homes, equal to 4.5 months of supply, and homes took a median of 30 days to sell. NAR said 25% of homes sold above list price, showing that competition is still alive in pockets of the market even after a sluggish start to the spring buying season.

Lawrence Yun, NAR’s chief economist, said, “More Americans are on the move, with home sales rising to the highest level since December.” The sales mix still tilted toward buyers with more financial room to maneuver: first-time buyers made up 35% of purchases, the highest share since June 2020, but that left most transactions to repeat buyers. In practice, that has meant households with cash, stronger incomes, home equity or the flexibility to downsize are the ones most able to move at today’s rates and prices.

The rebound was uneven across the country. Month-over-month sales rose in the Northeast, Midwest and South and were unchanged in the West. Compared with a year earlier, sales increased in the Midwest, South and West, but fell in the Northeast. That regional split suggests the thaw is incomplete, with some markets drawing buyers back while others remain pinned by price and financing pressure.

NAR’s forecast, released in November 2025, projected existing-home sales would rise about 14% in 2026 if mortgage rates ease and job gains continue. For now, the May data show a housing market that is moving again, but only for buyers who can absorb higher borrowing costs and elevated home prices.