Current residence gross sales rose to a five-month excessive in Might as extra first-time consumers stepped again into the market. The share of first-time purchaser reached 35% in Might, the best since June 2020. Nevertheless, 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 warfare started in late February and stay caught round 6.5% in current weeks. Vitality shock has reaccelerated inflation, which has outpaced wage development, additional weighing on housing affordability.
Whole current residence gross sales, together with single-family houses, townhomes, condominiums, and co-ops, rose 3.2% to a seasonally adjusted annual price of 4.17 million in Might, the best since December 2025, in keeping 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 items in Might, up 3.3% from April and 0.6% from a yr in the past. On the present gross sales price, Might 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-about a balanced market.
Houses stayed available on the market for a median of 29 days in Might, down from 32 days within the earlier month however up from 27 days in Might 2025.
The primary-time purchaser share was 35% in Might, the best share in almost six years. The share was up from 33% in April and 30% a yr in the past.
The Might all-cash gross sales share was 25% of transactions, unchanged from final month however down from 27% in Might 2025. All-cash consumers are much less affected by adjustments in rates of interest.
The Might median gross sales value of all current houses 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 value in March was up 1.7% from a yr in the past at $378,200. Latest positive factors for residence stock will put downward strain on resale residence costs in most markets in 2026.
Current residence gross sales in Might 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 Residence Gross sales Index (PHSI) is a forward-looking indicator primarily based on signed contracts. The PHSI rose from 73.8 to 74.8 in April. PHSI knowledge is usually launched a few week after current 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 keeping with the Nationwide Affiliation of Realtors’ knowledge. Nevertheless, resurgence in mortgage charges pushed by the Iran warfare might reverse the rise.
