Nation’s Home Sales Up

WASHINGTON, D.C. — (By Dale King, Realty News Report) – Existing home sales inched upward in May, says a report by the National Association of Realtors. But the .8 percent month-over-month hike – a decline of .7 percent year-over-year — was “subdued” by high mortgage rates – obstacles that NAR Chief Economist Lawrence Yun says must be reduced before significant home sales can be restored.

“The relatively subdued sales are largely due to persistently high mortgage rates,” Yun said in a news release. “Lower interest rates will attract more buyers and sellers to the housing market.”

In addition, more “participation in the housing market will increase the mobility of the workforce and drive economic growth.”

If mortgage rates decrease in the second half of this year, Yun said, “expect home sales across the country to increase due to strong income growth, healthy inventory and a record-high number of jobs.”

Freddie Mac’s mortgage rate report for this week should make Yun smile. “The 30-year FRM (fixed rate mortgage) averaged 6.77 percent as of June 26, down from last week when it averaged 6.81 percent. A year ago at this time, the 30-year FRM averaged 6.86 percent.”

“Borrowers should find comfort in the stability of mortgage rates, which have only fluctuated within a narrow 15-basis point range since mid-April,” commented Sam Khater, chief economist at Freddie Mac. “Although recent data show that home sales remain low, the resulting available inventory provides homebuyers with a wider range of options to consider when entering the market.”

In Houston, single-family home sales rose 6.8% with 9,058 homes sold in May compared to 8,483 sales in May 2024, according to the Houston Association of Realtors. Compared to May of 2024, Houston’s average sales price declined by 0.7 % to $438,230. The median price was down 1.2% to $339,425.

“With more homes to choose from and prices becoming a bit more favorable, people are definitely feeling more confident and getting back out there,” said HAR Chair Shae Cottar with LPT Realty. “This shift signals to sellers that motivated buyers are engaged and eager to take advantage of the current market conditions. We anticipate this momentum will carry us into the summer months.”

On the whole, residential purchases were mixed in various parts of the country in May, said the NAR report. On a month-to-month basis, sales rose in the Northeast, Midwest and South, but retreated in the West. Year-over-year, sales progressed in the Northeast and Midwest but fell back in the South and West.

The following is a NAR National summary of existing home sales for May:

Northeast

4.2 percent increase in sales month-over month to an annual rate of 500,000, up 4.2 percent year-over-year.
Median home price of $513,300, up 7.1 percent from May 2024.

Midwest

1 percent increase in sales month-over month to an annual rate of 990,000, up 1.0 percent year-over-year.

Median home price of $326,400, up 3.4 percent from May 2024.

South

1.7 percent increase in sales month-over month to an annual rate of 1.84 million, down 0.5 percent year-over-year.
Median home price, $367,800, down 0.7 percent from May 2024.

West

5.4 percent decrease in sales month-over month to an annual rate of 700,000, down 6.7 percent year-over-year.
Median home price, $633,500, up 0.5 percent from May 2024.

Other highlights of the NAR report:

Inventory in May

1.54 million units. Total housing inventory up 6.2 percent from April and 20.3 percent from May 2024 (1.28 million).
4.6-month supply of unsold inventory, up from 4.4 months in April and 3.8 months in May 2024.

Condos and co-ops

2.7 percent decrease in sales to a seasonally adjusted annual rate of 360,000 units, down 10 percent from May 2024.
Median price of $371,300, up 0.7 percent from May 2024.

Other key highlights

27 days: Median time on market for properties, down from 29 days in April, up from 24 days in May 2024.
30 percent of sales were made by first-time home buyers, down from 34 percent in April and 31 percent in May 2024.
27 percent of transactions were cash sales, up from 25 percent in April, down from 28 percent in May 2024.
17 percent of transactions were carried out by individual investors or second-home buyers, up from 15 percent in April and 16 percent in May 2024.
3 percent of sales were distressed sales (foreclosures and short sales), up from 2 percent in both April 2025 and May 2024.

Image: Courtesy CALpix

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