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xisting home sales in May were a bit stronger than expected, but still trailed behind last year's pace. The seasonally adjusted annual rate came in at 4.03 million, up 0.8% from April but down 0.7% year-over-year. This marked the slowest pace for the month of May since 2009, according to the National Association of Home Builders.

    Despite the sluggish market, prices continued to climb to a record high for the month of May. The median existing home sales price was $422,800, up 1.3% from a year ago and the 23rd month in a row of year-over-year price increases. High mortgage rates remain a significant challenge, with experts predicting that lower interest rates are needed to revitalize sales.

    NAR Chief Economist Lawrence Yun believes that lower mortgage rates will attract more buyers and sellers to the housing market, increasing participation and driving economic growth. However, it's unclear when or if mortgage rates will drop significantly, given the current economic uncertainty and the Federal Reserve's cautious approach to interest rate cuts.

    Meanwhile, inventory continues to rise, with a 20.3% year-over-year increase in May. This has pushed real estate toward a more balanced market, with Danielle Hale of Realtor.com noting that "we're moving from a pretty seller-friendly housing market to one with more balance." While this shift is a positive sign for buyers, costs remain near record highs, and many Americans are still struggling to afford homes.