More Americans Are on the Move as Home Sales Rise to a Five-Month High

CHICAGO — More buyers are stepping back into the housing market, and the latest sales data shows momentum building after a slower start to spring. Existing-home sales rose in May 2026, reaching the strongest level in five months as improving affordability helped bring more movement back to the market.

The shift is important for both buyers and sellers. Buyers are showing they are still willing to move when affordability improves, while sellers continue to benefit from tight inventory and strong home-price support.

Home Sales Rose in May

Existing-home sales, which include single-family homes, townhomes, condos, and co-ops, rose 3.2% in May compared with April. Sales were also up 3.2% year over year, showing renewed activity during what is typically one of the busiest seasons for real estate.

That increase brought sales to an annual pace of 4.17 million, the highest level since December 2025.

The takeaway is simple: buyers are not gone. Many have been waiting for the right combination of affordability, inventory, and confidence. In May, more of them moved forward.

Improving Affordability Helped Bring Buyers Back

Mortgage rates remain higher than many buyers would like, but they were still lower than a year earlier.

The average 30-year fixed mortgage rate was around 6.44% in May 2026, compared with approximately 6.82% in May 2025. At the same time, income growth has been outpacing home-price growth in many areas, helping some buyers feel more comfortable reentering the market.

That does not mean affordability is easy. Monthly payments are still a major factor. But compared with last year, some buyers are seeing slightly better conditions.

First-Time Buyers Became More Active

One of the most encouraging signs in the report is the return of more first-time buyers.

First-time buyers made up 35% of existing-home sales in May, up from 30% one year earlier. That is a meaningful jump because first-time buyers are often the group most affected by higher rates, home prices, and limited inventory.

Their increased activity suggests that some renters and younger households are finding a way back into the market, especially where pricing, income, and available homes align.

Inventory Improved, But Supply Is Still Tight

The number of homes for sale increased in May, but not enough to fully ease competition.

National inventory rose 3.3% from April, reaching 1.55 million homes. However, supply was only up 0.6% year over year, showing that the market is still not flooded with choices.

That limited supply continues to support home prices. The median existing-home price reached $429,300 in May, the highest price ever recorded for the month of May and up 1.3% from a year earlier.

For sellers, that is good news. For buyers, it means competition can still be real, especially for well-priced homes in desirable areas.

Homes Are Still Selling Quickly

Even with affordability challenges, well-positioned homes are not sitting long.

The typical home spent 29 days on the market in May, down from 32 days in April. Homes also received an average of 2.3 offers, and about a quarter of homes sold above list price.

That shows buyers are becoming active again, but still selective. Homes that are priced correctly, marketed well, and located in high-demand areas continue to move quickly.

The Midwest Saw the Biggest Sales Jump

The Midwest posted the strongest regional gain in May, with existing-home sales rising 6.4% month over month.

That matters for Chicago-area buyers and sellers because the Midwest continues to offer more relative affordability than many coastal markets. The region’s median existing-home price was $336,300, up 2.8% from a year earlier.

For Chicagoland, this supports what many local buyers and agents are already seeing: demand is still active, especially in neighborhoods and suburbs where buyers can find the right mix of price, lifestyle, schools, transit, and space.

The Bottom Line

The May housing data shows that more Americans are moving again.

Sales are up, first-time buyers are more active, and the Midwest is seeing strong momentum. At the same time, tight inventory continues to support prices, which means buyers still need a smart strategy and sellers still have an opportunity to benefit from limited competition.

For the Chicago-area market, the message is clear: affordability challenges have not erased demand. When the right home hits the market, buyers are still ready to act.

Looking to Buy Before Competition Picks Up Again?

Browse available homes across Chicago, the North Shore, and the Western Suburbs, or connect with the Cory Tanzer Group at Option Premier for expert guidance on pricing, timing, and finding the right property in a market where buyer demand is returning.

More to Explore: Why Buyers Are Still Competing for Homes in Chicago’s Western Suburbs?

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Ranked among the top 1% of real estate teams in the Chicagoland market, Cory Tanzer and the Cory Tanzer Group are experts in helping buyers and sellers navigate today’s market across Downtown Chicago, the North Shore, and the Western Suburbs. Recognized for their neighborhood expertise in areas such as University Village, University Commons, South Loop, and Pilsen, the team helps clients stay one step ahead by understanding where the Chicago market is headed next.