Overview

• May new single-family home sales dropped 13.7% from April to a seasonally adjusted annual rate of 623,000, marking the lowest pace since October 2024.
• Unsold new-home inventory climbed to 507,000 units, a 9.8-month supply that stands at its highest level in three years.
• Redfin data shows May’s median existing home sale price grew just 0.7% year-over-year, the slowest pace since June 2023, with metros including Oakland, Jacksonville and Dallas posting price declines.
• Longer listing times and higher inventories have shifted negotiating leverage toward buyers, prompting many sellers to offer concessions and price reductions.
• Analysts warn the market may face a sustained downturn that could dampen residential investment and broader economic growth.