NAR Existing-Home Sales Report Shows 3.2% Increase in May

Key Points:

• Existing-home sales rose by 3.2% both month-over-month and year-over-year in May 2026, reaching a seasonally adjusted annual rate of 4.17 million, marking the highest level since December.
• Home price affordability improved nationwide, with the Housing Affordability Index increasing to 105.6, driven by income gains outpacing home price growth and mortgage rates remaining near long-term averages despite a slight uptick.
• The median existing-home price hit a record high of $429,300, reflecting 35 consecutive months of year-over-year price increases, while inventory slightly increased to 1.55 million units, maintaining a 4.5-month supply.
• Regional sales trends varied, with month-over-month sales rising in the Northeast, Midwest, and South, but unchanged in the West; year-over-year sales increased in the Midwest, South, and West, but declined in the Northeast.
• The market showed strong fundamentals with only 1% of sales involving foreclosures or underwater mortgages, a median time on market of 29 days, and a rise in first-time homebuyers to 35% of sales, signaling robust economic activity linked to home sales.