Existing Home Sales Surge in May to Highest Level Since December

Existing home sales in the United States accelerated to their fastest pace of the year in May, rising 3.2% from April to a seasonally adjusted annualized rate of 4.17 million units, according to the National Association of Realtors. The figure also represented a 3.2% gain year-over-year and significantly beat economist forecasts of roughly 4.07 million units. Because the data reflects closings, the contracts were likely signed in April, when mortgage rates eased slightly from a sharp jump earlier in the year. The median existing home price rose 1.3% year-over-year to $429,300, a record high for the month of May, extending a streak of 35 consecutive months of annual price gains. Inventory edged up 3.3% month-over-month to 1.55 million units, representing a 4.5-month supply — still below the 6-month threshold considered balanced. First-time buyers made up 35% of sales, up from 30% a year earlier, while sales of homes priced above $1 million were 11% higher year-over-year. Regional performance was mixed, with sales rising in the Midwest, South, and West but falling in the Northeast.