U.S. Existing Home Sales (May 2026)

Existing home sales improve in May

• Existing home sales rose 3.2% month-on-month (m/m) to 4.17 million units (annualized) in May – well above the market consensus forecast calling for a smaller increase to 4.05 million. The sales level was up 3.2% on a year-over-year basis too. 
• Sales in the single-family segment rose 3.5% to 3.80 million, while sales in the smaller condo/co-op segment held steady at 370,000 for the fourth month in a row. Sales improved across most regions, rising in the Midwest (6.4%), South (3.5%), and Northeast (+2.2% - the first increase this year), but were unchanged in the West. 
• Unadjusted inventory levels stood at 1.55 million, up 3.3% from April and 0.6% from May 2025. Measured at the current sales rate and seasonally adjusting, unsold inventory stood at 4.1 months' supply, down slightly from 4.3 in the three months prior and also May 2025.
• The median home price was up 1.3% year-on-year – a mild acceleration from the month prior. First-time buyers made up 35% of sales, an increase from 33% in April and 30% the year before. 

Key Implications

• Existing home sales built on April's modest improvement to record a more notable increase in May. While gains were heavily concentrated in the Midwest and South, a moderate improvement in the Northeast – the region's first gain this year – adds to the report's positive narrative. But viewed against the bigger picture, the resale market remains challenged. The level of sales remains subdued, hovering near the 4-million mark for the third year in a row, while housing inventories remain at the low end of what is considered balanced territory (4-6 months).   
• A still-resilient labor market continues to provide some support to housing demand. However, mortgage rates remain elevated and have climbed higher since the start of the Middle East conflict. This increase in financing costs, at a time when buyers are contending with other notable cost increases, especially in transportation fuels, does not bode well for housing activity over the near-term. We see little chance of a major turnaround over the near term, with sales activity likely to remain subdued through year-end. 

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