U.S. home sales rose for a fourth consecutive month in May, increasing 7.9% from April, but a slowdown in new listings continued to constrain housing supply and limit the market’s recovery, according to the latest RE/MAX National Housing Report.
The report, which analyzed housing activity across 51 metropolitan areas, found closed transactions were down 0.5% from May 2025 despite the monthly increase, indicating demand remains uneven as buyers contend with affordability pressures and limited inventory growth.
New listings fell 3.3% from April and declined 8.4% from a year earlier, extending a seven-month streak of annual decreases.
The reduction in seller activity has tempered inventory growth even as the number of homes on the market continues to rise. Total inventory increased 8.4% from April and 2.0% from May 2025, marking the 29th consecutive month of year-over-year inventory gains.
The pace of inventory growth, however, has slowed compared with much of 2025, when many markets recorded double-digit annual increases.
“The housing market was finding its footing this spring, with steady month-over-month sales gains showing that buyers are still engaged,” RE/MAX President and Chief Growth Officer Chris Lim stated. “At the same time, the slowdown in new listings limited inventory growth.”
Home prices continued to move higher.
The median sales price across the 51 metro areas reached $450,000 in May, up 1.1% from April and 1.4% from a year earlier.
Homes spent an average of 42 days on the market before going under contract, three days fewer than in April but two days longer than in May 2025.
The average close-to-list price ratio remained unchanged at 99%, indicating sellers generally received prices near their asking amounts.
Months’ supply of inventory increased to 2.5 months from 2.3 months in April and was unchanged from a year earlier.
A balanced housing market is generally considered to have five to six months of inventory, suggesting conditions remain relatively tight despite ongoing inventory growth.
The RE/MAX National Housing Report is based on MLS data for single-family residential properties across 51 metropolitan areas and is not seasonally adjusted or annualized.
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