Home sales rise, boosting Home Depot demand for move-in projects

A modest pickup in home closings can show up fast on the sales floor. Existing-home sales rose 3.2% in May to a seasonally adjusted annual rate of 4.17 million units, the strongest pace of the year so far, and that tends to kick off the kind of move-in spending Home Depot associates know well: paint, cleaners, basic repairs, appliances, flooring, blinds, storage and installation work.

The biggest near-term signal for stores is not headline housing optimism but the customer mix. First-time buyers made up 35% of May transactions, the highest share since June 2020, and those shoppers usually need the most help turning an empty house into something livable. They are the customers comparing paint finishes, asking about entry lighting, measuring for blinds, and loading carts with shelving, organizers and the small repair items that turn into larger basket rings.

The housing report also showed a market that is still tight, but a little less frantic than before. Inventory improved to 1.55 million units, equal to 4.5 months of supply, while 25% of homes still sold above list price. Inspection-contingency waivers fell to 17% from 25% a year earlier, and contracts were closing in 30 days on average. That mix points to a market where buyers are still moving quickly, but with slightly more breathing room to plan projects once they get the keys.

Regionally, sales increased in the Northeast, Midwest and South. The median existing-home price rose 1.3% from a year earlier to $429,300, the 35th straight month of year-over-year gains. Lawrence Yun, chief economist for the National Association of REALTORS®, said more Americans are on the move and that improving affordability is helping drive momentum even as mortgage rates ticked up from earlier in the year. Only 1% of sales involved a foreclosure or underwater situation, suggesting the market remains orderly rather than distressed.

For Home Depot, that matters because the company has said its underlying demand was “relatively similar” to fiscal 2025 despite consumer uncertainty and housing-affordability pressure. In its May 19 first-quarter earnings release, Home Depot reported sales of $41.8 billion, up 4.8% from a year earlier, with comparable sales up 0.6% overall and 0.4% in the U.S. It also reaffirmed fiscal 2026 guidance for total sales growth of about 2.5% to 4.5% and comparable sales growth of about flat to 2.0%.

The first departments likely to feel a lift are the ones tied to move-in churn and quick refreshes: paint, lighting, storage, appliances, flooring and repair. Home Depot ended the quarter with 2,361 retail stores and more than 1,280 SRS locations, a footprint built to catch both DIY buyers and pros handling roofing, flooring and remodel jobs. That broader reach matters when a better housing market starts turning closings into projects.