Previously owned home purchases across the nation jumped last month to their strongest monthly performance since December, marking a notable shift in buyer activity following a weak beginning to the traditional spring buying period.
Sales of existing homes climbed 3.2% in May compared to April, reaching a seasonally adjusted annual rate of 4.17 million units, according to Tuesday’s report from the National Association of Realtors. The figure also represents a 3.2% increase from May of the previous year.
Regional data showed sales climbing year-over-year in the Midwest, South and West, while the Northeast experienced a decline, the NAR reported.
The May performance exceeded analyst projections of approximately 4.07 million units, based on FactSet data.
Monthly sales activity has largely remained near the 4-million annual rate since 2023, well below the traditional benchmark of roughly 5.2 million.
The May increase occurred despite mortgage rates continuing their upward trajectory throughout the spring, though current rates remain lower than last year’s levels.
National home values maintained their upward climb last month. The median purchase price nationwide grew 1.3% year-over-year in May, reaching $429,300, the NAR reported. Property values have now increased annually for 35 consecutive months.
The nation’s housing sector has struggled since 2022, when borrowing costs began rising from their pandemic-era lows. Sales of existing homes remained essentially unchanged last year, settling at a three-decade low. Activity has continued at a sluggish pace through this year, with April sales remaining flat after declining year-over-year during the first quarter.
