W
ASHINGTON (June 23, 2025) - Existing-home sales saw a modest increase in May, according to the National Association of REALTORS. Sales rose in the Northeast, Midwest, and South, but declined in the West. Year-over-year, sales improved in the Northeast and Midwest, while contracting in the South and West.
The relatively slow pace of sales is largely due to persistently high mortgage rates. Lower interest rates would attract more buyers and sellers to the market, said NAR Chief Economist Lawrence Yun. "If mortgage rates decrease in the second half of this year, expect home sales across the country to increase due to strong income growth, healthy inventory, and a record-high number of jobs."
Key statistics for May:
* Total existing-home sales rose 0.8% month-over-month to a seasonally adjusted annual rate of 4.03 million.
* Sales declined 0.7% year-over-year, down from 4.06 million in May 2024.
* Inventory increased by 6.2% from April and 20.3% from May 2024, with a 4.6-month supply of unsold inventory.
* The median sales price reached $422,800, up 1.3% from one year ago and a record high for the month of May.
Regional snapshot:
* Northeast: Sales rose 4.2% month-over-month to an annual rate of 500,000, up 4.2% year-over-year.
* Midwest: Sales increased 2.1% month-over-month to an annual rate of 990,000, up 1.0% year-over-year.
* South: Sales rose 1.7% month-over-month to an annual rate of 1.84 million, down 0.5% year-over-year.
* West: Sales declined 5.4% month-over-month to an annual rate of 700,000, down 6.7% year-over-year.
Mortgage rates:
* The average 30-year fixed-rate mortgage was 6.81%, down from 6.84% one week prior and 6.87% one year ago.
The National Association of REALTORS is involved in all aspects of residential and commercial real estate, providing valuable information to help real estate professionals serve their clients and achieve their goals.
