The latest housing data from the National Association of Realtors (NAR) paints a nuanced picture of where the market stands—and where it might be headed. Existing-home sales in May rose 0.8% from April to a seasonally adjusted annual rate of 4.03 million. However, year over year, sales slipped 0.7%. So, is this officially a buyer’s market? Not quite—but we’re getting closer.
More Listings, More Leverage
Inventory saw a meaningful jump in May, up 6.2% from the previous month and more than 20% higher than a year ago. That translates to a 4.6-month supply of homes on the market—still shy of the six-month mark that typically signals a balanced market, but the highest we’ve seen in years. More options on the market could give buyers a bit more negotiating power, especially in areas where homes are taking longer to sell or price reductions are becoming common.
Price Growth Cools, but Affordability Remains a Hurdle
The median existing-home price hit a new high in May at $422,800—up 1.3% from a year ago but marking the smallest year-over-year increase in months. While prices remain elevated, the pace of growth is clearly decelerating, which could offer some relief for buyers. Mortgage rates, however, continue to weigh heavily on affordability. As of mid-June, the average 30-year fixed rate hovered around 6.81%—slightly lower than last year, but still high enough to keep monthly payments stretched. According to Lawrence Yun, chief economist for the NAR, “Lower rates could unlock more activity on both sides of the market—encouraging current owners to list and giving buyers more breathing room on affordability.”
Who’s Buying Right Now?
In May, 30% of home purchases were made by first-time buyers—a drop from April, but still a sizable share. Cash buyers, likely including investors and second-home buyers, made up 27% of sales, while individual investors represented 17% of the market. These trends show a wide mix of motivations: first-timers trying to get in before rates climb again, investors taking advantage of softening prices in some regions, and seasoned buyers paying in cash.
A Shifting Market with Room to Negotiate
Sellers still have the upper hand in many areas, but the market is gradually shifting. Homes spent a median of 27 days on the market in May—quicker than April but slightly slower than last year—indicating that well-priced, move-in-ready homes continue to attract buyers. However, today’s buyers are more cautious and informed, taking time to compare options and negotiate. With inventory on the rise and mortgage rate pressure beginning to ease, conditions are slowly tilting toward greater balance. Whether you’re buying or selling, success in this market depends on strategy, preparation, and a solid understanding of your local trends.
Regional Sales Breakdown
Northeast: Existing-home sales annual rate of 500,000; an increase of 4.2% from April 2025 and 4.2% from May 2024. The median sales price of $513,300 represented a 7.1% increase from May 2024.
Midwest: Existing-home sales annual rate of 990,000; an increase of 2.1% from April 2025 and 1% from May 2024. The median sales price of $326,400 represented a 3.4% increase from May 2024.
South: Existing-home sales annual rate of 1.84 million; an increase of 1.7% from April 2025 but a decrease of 0.5% from May 2024. The median sales price of $367,800 represented a 0.7% decrease from May 2024.
West: Existing-home sales annual rate of 700,000; a decrease of 5.4% from April 2025 and 6.7% from May 2024. The median sales price of $633,500 represented a 0.5% increase from May 2024.
