• 4.3 million existing homes were sold in May (SAAR), up 0.2% from April and down 20.4% from May 2022, according to the National Association of Realtors (NAR).
• Total housing inventory at the end of May amounted to 1.08 million units, NAR said, totaling 3.0 months of supply at the current sales pace.
• The median existing-home price for all housing types in May was $396,100, down 3.1% from May 2022.

What happened: Existing home sales increased slightly from a month ago, the first monthly increase in a year and a half. 

Why it matters: Low inventory and affordability pressure on buyers and sellers alike has been slowing sales for nearly two years. But now home sales have picked up ever so slightly from a month ago in the midst of the spring home shopping season. 

What Zillow Senior Economist Nicole Bachaud thinks: This spring home shopping season has been tough, with low inventory and volatile mortgage rates limiting buyers at every turn. However, the demand for homes is not letting up with strong demographics keeping a large enough number of buyers in the pool who can afford to stay shopping. Existing homeowners are hesitant to enter the market as sellers, holding onto their low mortgage rates and monthly payments, keeping inventory down. This slow flow of new existing home listings coming onto the market is suppressing sales from levels seen a year ago as there are so few homes available to transact, but this spring season is getting back into the normal rhythms of the market and sales have increased from a year ago. Low inventory will continue to keep a hold on this market and suppress overall existing home sales numbers, and thus put pressure on prices and affordability. But thankfully the new construction market is churning out a steady flow of new homes to help fill the gap.