Four months of rising home sales can't mask a deepening supply crunch as new listings hit a seven-month low
United States home sales climbed for the fourth consecutive month in May, rising 7.9% from April, however, the gain comes with a notable asterisk.
According to the RE/MAX May 2026 National Housing Report, which draws on data across 51 metro areas nationwide, new listings fell 3.3% from April and dropped 8.4% year over year, extending a seven-month streak of annual declines dating back to November 2025. That retreat is steadily narrowing the supply pipeline that has underpinned spring momentum.
Sales remained 0.5% below year-ago levels despite the month-over-month advance. The national median sales price in May 2026 reached $450,000, up 1.4% from a year earlier and 1.1% from April.
Homes were selling in an average of 42 days, three fewer than April but two days slower than May 2025.
The months' supply of inventory stood at 2.5, unchanged from a year ago and up from 2.3 in April.
"The housing market was finding its footing this spring, with steady month-over-month sales gains showing that buyers are still engaged," said Chris Lim, RE/MAX President and Chief Growth Officer.
"At the same time, the slowdown in new listings limited inventory growth. That's keeping conditions competitive in many markets, even as price growth remains relatively moderate. For buyers and sellers alike, this is a market where timing and expert guidance matter more than ever."
New listings retreat extends seven-month streak
The supply picture is the defining friction point. Overall inventory rose 8.4% from April and 2.0% year over year, the 29th consecutive month of annual inventory growth, but those gains are shrinking.
With new listings in late May recording one of the sharpest single-week drops of 2026, the trend is not showing signs of reversing soon.
The divergence by market was sharp. Dover, Delaware, saw new listings collapse 39.4% year over year. Washington, D.C., fell 32.4% and Baltimore dropped 32.0%.
Meanwhile, Minneapolis added new supply at 12.1% above a year ago, with Cincinnati up 8.8%, a reminder that national averages can obscure deeply local realities.
The close-to-list price ratio held at 99% nationally, masking significant variation: San Francisco buyers paid an average 107% of list price in May 2026, while Miami sellers accepted just 94.1%.
Prices hold steady as competition remains uneven
Sales activity also split sharply by geography. Manchester, New Hampshire, recorded the biggest year-over-year sales increase at 18.2%, while Providence, Rhode Island, posted the steepest decline at 14.2%.
National Association of Realtors (NAR) Chief Economist Lawrence Yun, speaking at the NAR 2026 Realtors Legislative Meetings on June 16, projected existing-home sales would rise 4% this year, with mortgage rates averaging 6.5% in 2026.
With rates expected to stay elevated through year-end, the listings constraint is likely to remain the central challenge.
For now, May's numbers confirm that buyer engagement is real, but without a sustained rebound in new listings, the market's upward momentum remains supply-constrained.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
