Spurred in part by first-time buyers, 5.6 million existing homes went under contract last month, a 1.1 percent increase from April and 2.7 percent more than in May 2016.
Realtor.com reports that buyers are dealing with rising prices of used homes. Results from a new National Association of Realtors report found that the median price of an existing home rose to $252,800 in May. New homes sold for a median price of $309,200 in April, according to the most recent data from the Census Bureau.
Also, properties are on the market for only 27 days on average, the shortest time since NAR began tracking the figure in 2011.
The higher costs are discouraging folks who aren't big earners from jumping into the fray, says Senior Economist Joseph Kirchner of realtor.com. "Affordability is getting worse, especially at that lower end of the market," he adds. "Some people are getting priced out."