The National Association of Realtors (NAR), in its latest analysis of May 2025 home sales, has found that total housing inventory was at 1.54 million units, up 6.2% month-over-month from April 2025 and 20.3% year-over-year from May 2024 when total housing inventory clocked in at 1.28 million. This represents a 4.6-month supply of unsold inventory, up from 4.4 months in April, and 3.8 months in May 2024.
Overall, NAR found that existing-home sales rose in May, with sales elevated in the Northeast, Midwest, and South, but down in the West. Year-over-year, sales progressed in the Northeast and Midwest, but contracted in the South and West.
“The relatively subdued sales are largely due to persistently high mortgage rates. Lower interest rates will attract more buyers and sellers to the housing market,” said NAR Chief Economist Lawrence Yun. “Increasing participation in the housing market will increase the mobility of the workforce and drive economic growth. 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.”
A Spike in Inventory
Playing into the growth in inventory was several factors, including a still-high-rate environment, high home prices, and continued overall economic uncertainty. The 20%-plus hike in total housing inventory reported in May of 1.54 million units far outpaced May 2024’s housing inventory total of 1.28 million, as market activity was held back by mortgage rates. Fortune reports that the average 30-year fixed mortgage rate is currently 6.808%. And despite Federal Reserve rate cuts, rates remain stubbornly high, dampening affordability, and buyer activity.
Oddly enough, in May 2024, the 30-year fixed-rate mortgage was very close to today’s numbers, around the 6.89% mark.
As the nation is now in the midst of an international conflict that may lead to even more heightened concern for the average U.S. consumer, the state of the economic and reluctance to make large purchases remains top of mind for many. With the median existing-home sales price for all housing types at $422,800, it is not surprising that many are returning to sidelines, and are reconsidering this major purchase. This total represents a 1.3% year-over-year rise from $417,200 reported in May 2024–a record high for the month of May, and the 23rd consecutive month of year-over-year price increases.
A Regional Snapshot
Regionally, existing-home sales in May 2025 in the Northeast saw a 4.2% increase in sales month-over-month to an annual rate of 500,000, up 4.2% year-over-year. The median price in the Northeast hit $513,300, up 7.1% year-over-year from May 2024.
In the Midwest, there was a 2.1% increase in sales month-over-month to an annual rate of 990,000, up 1.0% year-over-year. In the Midwest, there was nearly a $200,000 drop in the media price from the Northeast, as the Midwest reported the median price at $326,400, up 3.4% from May 2024.
In the South, there was a 1.7% increase in sales month-over-month to an annual rate of 1.84 million, down 0.5% year-over-year. And in the South, the median price was $367,800, down 0.7% from May 2024’s reported totals.
Finally, in the West, there was a 5.4% decrease in sales month-over-month to an annual rate of 700,000, down 6.7% year-over-year. At $633,500, the median price of homes sold in the West was up 0.5% from May 2024.
Click here for more on NAR’s May 2025 existing home sales report.
