Existing Home Sales Hit Highest Level Since December

• 11:27 AM EDT

by UrbanTurf Staff

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The spring housing market showed some welcome momentum in May, with existing home sales posting their biggest monthly gain of the year.

According to the National Association of Realtors, sales of previously owned homes climbed 3.2% from April to a seasonally adjusted annual rate of 4.17 million — the strongest pace since December. 

Two forces helped drive the uptick. Mortgage rates, while slightly higher during May than April, were still running below year-ago levels, giving buyers a modest affordability edge compared to the prior spring. A growing supply of homes for sale added fuel — inventory climbed 3.3% from April to 1.55 million units, a 4.5-month supply. More options on the market appear to have drawn in buyers who had been waiting on the sidelines, including first-timers: buyers purchasing their first home made up 35% of all May sales, up from 33% the prior month and 30% a year ago, the highest share since June 2020.

Prices continued their steady climb alongside the sales increase. The national median existing-home price reached $429,300 in May, a 1.3% year-over-year gain and the 35th consecutive month of annual price growth. NAR chief economist Lawrence Yun noted that wage growth is running slightly ahead of home price appreciation in most markets — a shift that, combined with rates still below last year's levels, appears to be giving more buyers the confidence to move forward.

This article originally published at https://dc.urbanturf.com/articles/blog/existing_home_sales_hit_highest_level_since_december/24713.