Existing Home Sales Slid in May

Housing Data
Published
Existing Home Sales as of May 2024

Existing home sales fell for the third straight month in May because of lingering high mortgage rates and record-high prices, according to the National Association of Realtors (NAR). Low resale inventory and strong demand continued to drive up existing home prices, marking the 11th consecutive month of year-over-year median sales price gains. However, rising inventory is likely to dampen home price growth in the months ahead.

Home owners with lower mortgage rates have opted to stay put to avoid trading in for higher rates. This trend is driving home prices higher and resale inventory lower. Eventually, mortgage rates are expected to gradually decrease, leading to increased demand and expanded inventory in the coming quarters. However, that decline will depend on future inflation reports.

Total existing home sales in May fell 0.7% to a seasonally adjusted annual rate of 4.11 million — 2.8% lower than a year ago. Meanwhile, the share of first-time buyers fell to 31%, down from 33% in April but up from 28% in May 2023.

Inventory rose from 1.2 million in April to 1.28 million units in May and is up 18.5% from a year ago. At the current sales rate, unsold inventory sits at a 3.7-month supply, up from 3.5 last month and 3.1 a year ago. This inventory level remains very low compared to balanced market conditions (a 4.5- to 6-month supply) and illustrates the long-run need for more home construction.

Homes stayed on the market for an average of 24 days in May, down from 26 days in April but up from 18 days in May 2023.

Fan-Yu Kuo, NAHB senior economist, provides more insights in this Eye on Housing post.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Economics | Multifamily

May 08, 2025

Multifamily Developer Confidence Falls in First Quarter

Confidence in the market for new multifamily housing declined year-over-year in the first quarter, according to the Multifamily Market Survey (MMS) released today by NAHB. The MMS produces two separate indices. The Multifamily Production Index (MPI) had a reading of 44, down three points year-over-year, while the Multifamily Occupancy Index (MOI) had a reading of 82, down one point year-over-year.

Sustainability and Green Building | Advocacy

May 07, 2025

Energy Star Transition and Its Effect on NAHB Members

Several recent media reports suggest that the Energy Star program, a proven private-public partnership administered by the Environmental Protection Agency (EPA), is going through a possible transition period that could lead to its elimination.

View all

Latest Economic News

Economics

May 06, 2025

Mortgage Activity Levels Off in April as Rates Increase

Mortgage loan applications saw little change in April, as refinancing activity decreased. The Market Composite Index, which measures mortgage loan application volume based on the Mortgage Bankers Association (MBA) weekly survey, experienced a 0.4% month-over month increase on a seasonally adjusted (SA) basis. However, year-over-year, the index is up 29.3% compared to April 2024.

Economics

May 06, 2025

Prices for New Homes Continue to Drop as Existing Rises

The median price for a new single-family home sold in the first quarter of 2025 was $416,900, a mere $14,600 above the existing home sale price of $402,300, according to U.S. Census Bureau and National Association of Realtors data (not seasonally adjusted – NSA).

Economics

May 05, 2025

Student Housing Construction Investment Rises in the First Quarter of 2025

Private fixed investment in student dormitories increased by 2.3% in the first quarter of 2025, reaching a seasonally adjusted annual rate (SAAR) of $4.04 billion. This gain followed a 1.0% increase in the previous quarter. However, private fixed investment in dorms was 2% lower than a year ago, as elevated interest rates place a damper on student housing construction.