Existing-home sales in the U.S. increase by 0.8% month-over-month, reaching a seasonally adjusted annual rate of 4.03 million units in May, yet remain historically low, marking the slowest May performance since 2009, according to the National Association of Realtors.
Total unsold inventory grows 6.2% from April, totaling 1.54 million units. This represents a supply of 4.6 months, up from 4.4 months in April and significantly above the 3.8-month supply recorded in May 2024.
Despite sluggish sales, the median existing-home price reaches a record high for May at $422,800, a 1.3% increase year-over-year, marking the 23rd consecutive month of annual price gains.
Single-family home sales rise 1.1% month-over-month to an annual rate of 3.67 million units, a slight 0.3% increase from May 2024. Condominium and co-op sales decline by 2.7% month-over-month, dropping 10.0% year-over-year, reaching an annual rate of 360,000 units.
Regional performances vary significantly. Sales in the Northeast increase 4.2% month-over-month and year-over-year, with median prices climbing 7.1% to $513,300. The Midwest sees sales rise 2.1% month-over-month and 1.0% year-over-year, as median prices increase 3.4% to $326,400. In the South, sales rise 1.7% month-over-month but decrease by 0.5% year-over-year, with median prices declining 0.7% to $367,800. Meanwhile, sales in the West decline 5.4% month-over-month and 6.7% year-over-year, though median prices edge up 0.5% to $633,500.
Homes remain on the market a median of 27 days in May, down from 29 days in April but higher than the 24 days recorded one year ago. First-time buyers account for 30% of purchases, down from 34% in April. Cash transactions rise slightly to 27% of total sales, and distressed sales increase to 3%.
Mortgage rates remain elevated, averaging 6.81% for a 30-year fixed-rate mortgage in mid-June, down slightly from 6.84% the previous week and 6.87% a year ago.
