US Existing-Home Sales Hit 2025 Peak in May, Beating Forecasts
Sales of previously owned homes climbed 3.2% month-on-month to a seasonally adjusted annual rate of 4.17 million units, according to data released Tuesday by the National Association of Realtors (NAR) — outpacing analyst forecasts that had pencilled in a more modest gain.
NAR Chief Economist Lawrence Yun welcomed the figures as a turning point for a market that has spent nearly three years hovering near the 4 million annual pace threshold, weighed down by elevated mortgage rates and persistent affordability constraints.
"More Americans are on the move, with home sales rising to the highest level since December," Yun said. "This is great news for the housing market and the economy."
While mortgage rates have crept back above 6.5% in recent months, they remain below where they stood a year ago — a gap that appears to be translating into measurable buyer momentum. "Improving affordability is helping drive this momentum," Yun added.
Prices, Inventory and First-Time Buyers All Move Higher
The median existing-home sales price rose 1.3% year-on-year to $429,300 in May, NAR data showed. Housing inventory also edged higher, reaching 1.55 million units — the most since July — equivalent to 4.5 months of supply at the current sales pace.
First-time buyers continued to re-enter the market in greater numbers, accounting for 35% of May sales, up from 33% in April and a notably stronger 30% recorded in the same month last year — a trend that points to broadening participation beyond existing homeowners.
Regional Breakdown
Geographically, sales gains were broad-based, with the South, Northeast and Midwest all posting monthly increases while the West held steady. The Midwest emerged as a particular bright spot, recording an annualised transaction rate of 1 million — its strongest performance since April 2023.
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