Existing Home Sales Slid in May
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.
Latest from NAHBNow
Membership | Economics
Sep 11, 2026
Median Revenue Flat for NAHB Builder Members in 2025
According to the most recent NAHB member census, nearly two-fifths (38%) of NAHB Builder members earned between $1 million and $5 million in total revenue in 2025.
Education | Education at IBS
Sep 10, 2026
13 IBS Education Presentation Replays Now Available
To help industry professionals stay ahead of residential construction trends and bring actionable ideas to their businesses, NAHB is offering members exclusive access to the most valuable IBS Education sessions from the 2026 show.
Latest Economic News
Economics
Sep 10, 2026
Energy Prices Rise Again in August
Residential building material prices, excluding energy, rose 0.2% in August and were up 5.1% from a year ago. Energy prices rose sharply in August, as prices for energy inputs to residential construction rose 6.6% over the month.
Economics
Sep 09, 2026
Mortgage Applications Decline for Sixth Straight Month in August
Mortgage application activity continued to decline in August as elevated US treasury yields pushed mortgage rates higher. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, declined 3.2% month-over-month in August on a seasonally adjusted basis, marking the sixth consecutive monthly decline.
Economics
Sep 09, 2026
Who Are NAHB’s Builder Members?
The National Association of Home Builders (NAHB) conducts an annual census to better understand the composition and characteristics of its members. In 2025, 35% of NAHB’s membership was comprised of builder members—single-family and multifamily builders, residential and commercial remodelers, commercial builders, land developers, and manufacturers of modular/panelized/log homes.