Key facts
- List prices in the US housing market saw a steep drop in May.
- Buyer activity increased in May.
- New listings surged in the Northeast and Midwest regions in May.
- The surge in new listings reversed prior declines.
The May housing market report from Realtor.com® indicates a significant shift, with list prices experiencing a steep drop while buyers began to show increased interest. This trend was particularly evident in the Northeast and Midwest regions, where new listings surged in May. This surge reversed declines observed just two months prior, suggesting a potential unlocking of supply in these areas. The report comes amidst ongoing challenges including climbing mortgage rates, rising inflation, and continued geopolitical uncertainty, yet the spring housing market showed signs of renewed activity. Despite these challenges, mortgage rates are not historically high, and real mortgage rates are relatively low amid resurging inflation.