Present residence gross sales rose to a five-month excessive in Could as extra first-time patrons stepped again into the market. The share of first-time purchaser reached 35% in Could, the very best since June 2020. Nonetheless, gross sales remained weak in comparison with historic norms, with still-tight stock continued to push up residence costs. Mortgage charges, although decrease than a yr in the past, have elevated greater than 50 foundation factors for the reason that Iran battle started in late February and stay caught round 6.5% in latest weeks. Power shock has reaccelerated inflation, which has outpaced wage progress, additional weighing on housing affordability.
Complete present residence gross sales, together with single-family properties, townhomes, condominiums, and co-ops, rose 3.2% to a seasonally adjusted annual fee of 4.17 million in Could, the very best since December 2025, in accordance with the Nationwide Affiliation of Realtors (NAR). On a year-over-year foundation, gross sales had been 3.2% increased from a yr in the past.
The present residence stock stage was 1.55 million models in Could, up 3.3% from April and 0.6% from a yr in the past. On the present gross sales fee, Could unsold stock sits at a 4.5-months’ provide, unchanged from April however decrease than 4.6-months a yr in the past. Stock between 4.5 to six months’ provide is usually thought of a balanced market.
Houses stayed available on the market for a median of 29 days in Could, down from 32 days within the earlier month however up from 27 days in Could 2025.
The primary-time purchaser share was 35% in Could, the very best share in practically six years. The share was up from 33% in April and 30% a yr in the past.
The Could all-cash gross sales share was 25% of transactions, unchanged from final month however down from 27% in Could 2025. All-cash patrons are much less affected by adjustments in rates of interest.
The Could median gross sales worth of all present properties was $429,300, up 1.3% from final yr. This marks the thirty fifth consecutive month of year-over-year will increase. The median condominium/co-op worth in March was up 1.7% from a yr in the past at $378,200. Current positive aspects for residence stock will put downward stress on resale residence costs in most markets in 2026.
Present residence gross sales in Could had been combined throughout the 4 main areas. Gross sales rose within the Midwest (+6.4%), South (+3.2%) and Northeast (+2.2%) however remained unchanged within the West. On a year-over-year foundation, gross sales declined within the Northeast (-8.0%) however elevated within the South (+5.9%), West (5.6%) and Midwest (2.0%).
The Pending House Gross sales Index (PHSI) is a forward-looking indicator based mostly on signed contracts. The PHSI rose from 73.8 to 74.8 in April. PHSI knowledge is usually launched a few week after present residence gross sales studies. On a year-over-year foundation, pending gross sales had been 3.2% increased than a yr in the past, in accordance with the Nationwide Affiliation of Realtors’ knowledge. Nonetheless, resurgence in mortgage charges pushed by the Iran battle may reverse the rise.
