The National Association of Realtors reported existing home sales in the U.S. rose 3.2% in May 2026 from the previous month, reaching a seasonally adjusted annual rate of 4.17 million units. This marks the fastest monthly pace for home sales since December 2025.
Economists had projected May existing home sales would reach approximately 4.07 million units on a seasonally adjusted annual rate. The May 2026 sales also represented a 3.2% increase compared with May 2025. Year-over-year home sales from May 2025 increased in the Midwest, South, and West regions of the U.S., while decreasing in the Northeast region.
The median sales price for an existing home in the U.S. was $429,300 in May 2026, an increase of 1.3% from May 2025. U.S. median home prices have increased on an annual basis for 35 consecutive months. However, the median listing price for new U.S. home inventory decreased 0.1% month-over-month in May 2026.
The housing inventory totaled 1.55 million unsold homes at the end of May 2026. This inventory increased 3.3% from April 2026 and 0.6% from May 2025, representing a 4.5-month supply at the May sales pace. New home listings in the U.S. increased 1.4% month-over-month in May 2026, while pending sales remained essentially flat.
First-time buyers accounted for 35% of U.S. home purchases in May 2026. Approximately 25% of all home sales in May 2026 were cash transactions. The average duration homes remained on the market was 29 days. The share of homes selling below their original list price was 59.8% in May 2026.
Sales of homes priced above $1 million increased 11% in May 2026 compared to the previous year. Conversely, sales of homes priced between $100,000 and $250,000 decreased 5% year-over-year. According to the association, the U.S. housing market experienced a period of reduced transaction volume beginning in 2022 as mortgage rates increased. The historical annual average for U.S. home sales is approximately 5.2 million units.
Lawrence Yun, chief economist for the National Association of Realtors, said, "Improving affordability is helping drive this momentum." Mortgage buyer Freddie Mac reported the average rate on a 30-year mortgage ranged from 6% to 6.46% in March and April 2026, and was 6.48% in early June 2026. Yun said, "Income gains are also outpacing home price growth by a small margin in most parts of the country."
No independent assessment was available for this report.