Sales of previously owned homes rebounded more than expected in May, rising 3.2% from April to an annual rate of 4.17 million homes and beating forecasts of a 1% gain.
According to the latest figures from the National Association of Realtors (NAR), sales of existing homes were also up 3.2% from the previous year, the strongest growth since December. The NAR figures are based on closed transactions that reflect contracts signed in April, when mortgage rates were slightly lower.
The number of homes for sale increased 3.3% over April to 1.55 million units, up less than 1%, reflecting 4.5 months’ supply set against a level of six months that is regarded as a good balance between buyer and seller. The tight inventory means that home values continue to rise, with a median price of a home sold in May sitting at $429,300, 1.3% higher than 2025 and a record high price for the month.
Welcoming the figures, Lawrence Yun, chief economist for the NAR, said, “Even with mortgage rates ticking up compared to earlier in the year, they remain lower than a year ago and are essentially at the long-term historical average. Income gains are also outpacing home price growth by a small margin in most parts of the country.”
IAM Member Impact: Although the home sale market remains depressed for the domestic moving industry in the United States, sales continue to be strongest on the higher end of the market that is favorable to the professional moving industry.