Home Sales Near Historic Lows, Prices Hit Record Highs

U.S. home sales in May dropped to the third-lowest level in a decade as homebuyers continue to face elevated mortgage rates, record-high prices and low inventory.

Last month, 407,959 homes were sold, down roughly 3% from a year ago, according to real estate brokerage Redfin. To put that in perspective, only two months in the past decade saw lower sales — October 2023, when mortgage rates hit a 23-year high and May 2020, at the onset of the pandemic.

Despite the slowdown, demand continues to outpace supply across much of the country, which has pushed prices higher. In May, the median home sale price hit a record $439,716, up 5.1% from the year before.