US existing-home sales rose 3.2% in May 2026 to an annualized rate of 4.17 million units, the highest pace of the year, surpassing market expectations and Bloomberg survey forecasts [1, 2, 3, 4]. The median sales price of an existing home increased 1.3% year-on-year to $429,300 in May, reflecting steady price growth [1, 2, 3, 4].
Housing inventory edged up slightly from a year earlier to 1.55 million units, the highest since July 2025, representing 4.5 months of supply [1, 2, 3, 4]. Sales rose across the South, Northeast, and Midwest regions from April, while sales in the West remained unchanged [1, 2, 3]. The Midwest region recorded 1 million annualized transactions in May, the highest since April 2023 [1, 2, 3].
First-time homebuyers accounted for 35% of sales in May, the largest share since June 2020, signaling increased participation from new buyers [1, 2, 3]. Meanwhile, the share of sales to investors has fallen, noted Lawrence Yun, chief economist at the National Association of Realtors (NAR) [1, 2, 3].
Mortgage rates recently rose above 6.5% but remain below last year’s levels, improving affordability and supporting the rise in home sales. Yun commented, "Improving affordability is helping drive this momentum" [1, 2, 3, 4]. He added, "Certainly, if the mortgage rate was to retreat back down toward 6%, then one can feel comfortable that sales would be rising. But with uncertainty related to oil prices and inflationary pressures, we have to wait and see" [2].
Yun also said, "More Americans are on the move, with home sales rising to the highest level since December. This is great news for the housing market and the economy" [1].
The next key data point will be the June existing-home sales report, which will show whether the upward momentum continues amid changing mortgage rates and economic conditions.
