Sales of previously occupied homes in the United States rose more than expected in May, painting a more optimistic picture after a sluggish start to this year's spring selling season.
May’s result also matched the fastest pace since December 2025 and marked the strongest May reading since 2023, when sales ran at 4.18 million, according to the report.
The pickup suggests the housing market is proving more resilient than many had anticipated, even with mortgage rates still hovering in the mid-6 percent range. The average rate on a 30-year fixed mortgage was about 6.44 percent in May, a level that continues to constrain affordability at a time when inflation is still pressuring household budgets and the Middle East war has kept energy markets on edge.
“More Americans are on the move, with home sales rising to the highest level since December,” said Lawrence Yun, NAR’s chief economist. “This is great news for the housing market and the economy. Improving affordability is helping drive this momentum.”
First-time buyers played an outsized role in May’s momentum. NAR said they accounted for 35 percent of sales, up from 33 percent in April and 30 percent a year earlier. The increase comes as home-price growth has cooled enough in some markets to stop outpacing inflation—and in some places has also lagged income gains—providing a modest, uneven boost to affordability.
Affordability improved most over the past year in the West, according to the NAR, even as the region remains among the most expensive in the country.
Prices, meanwhile, continued to rise alongside sales. NAR said the median existing-home price across all housing types hit a record for the month of May at $429,300, up 1.3 percent from $423,700 a year earlier.
Home sellers are still standing to benefit from the current inventory conditions, with NAR data showing that the months’ supply of existing homes for sale stayed unchanged at 4.5 months.
A supply of roughly five to six months is typically viewed as a balanced market between sellers and buyers, while a lower figure signals tighter supply and relatively limited competition among sellers.
“The new record-high May home price reflects solid fundamentals for homeowners and ongoing supply constraints,” Yun said. “Only 1 percent of all home sales involved foreclosure or an underwater situation in which the sale price could not cover the outstanding mortgage balance. This shows homeowners are on solid financial footing.”