Existing-Home Sales Pick Up Slightly in May

Existing-home sales are growing, but not by much. In May, sales of existing homes saw a slight month-over-month increase, rising 0.8% to an annual rate of 4.03 million, according to data from the National Association of Realtors. However, when compared with May 2024, sales were down by 0.7%. At the same time, the median home price grew by 1.3% year-over-year to $422,800, marking a record high for May.

Regionally, sales rose on a month-over-month basis in the Northeast, Midwest, and South, but fell in the West. Compared with last year, only the Northeast and Midwest saw growth, while the South and West experienced declines.

"The relatively subdued sales are largely due to persistently high mortgage rates. Lower interest rates will attract more buyers and sellers to the housing market," said NAR Chief Economist Lawrence Yun. "Increasing participation in the housing market will increase the mobility of the workforce and drive economic growth. If mortgage rates decrease in the second half of this year, expect home sales across the country to increase due to strong income growth, healthy inventory, and a record-high number of jobs."