May Housing Market Blooms — Inventory And Listings Skyrocket

Inventory and new listings reached their highest levels in May since the latter half of 2022.

The number of homes listed in the 53 metro areas tracked by RE/MAX increased 8.7% over April and 39.6% year-over-year. New listings surpassed 2023 levels by double-digit percentages for the third consecutive month — 15.1% in May, 18.2% in April, and 17.6% in March.

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Driven by the 22-month high in new listings, May home sales rose 10.9% compared to April and 0.7% compared to May 2023. Monthly home sales in 2024 have outpaced 2023 figures for four of the first five months.

The median sale price rose 2.4% from April, reaching $435,000, which is 4.8% higher than May 2023.

"Most sellers are seeing the advantages of listing their homes now. They're getting their asking price and enjoying the benefits of a relatively quick sale," RE/MAX President Amy Lessinger said. "Growing inventory offers more options for homebuyers, too, and we're seeing more sales activity as a result. Mortgage rates continue to impact the rhythm of the housing market. If inventory keeps bulking up and mortgage rates don't change, prices may eventually start to soften."

Sale prices are rising steadily in metro areas across the country. Although Cleveland had one of the lowest median sales prices at $245,000, it also saw the greatest year-over-year increase, spiking 18.9%.

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"The median sales price has increased due to tight inventory, and that's stoking buyer competition and driving prices higher," said Linda LaFleur, broker/owner of RE/MAX Crossroads in Cleveland. "The situation will likely persist until the Cleveland market offers more affordable housing and more listings are available. An uptick in listings would certainly help balance the market."

Home sales were up 10.9% in May compared to April and 0.7% compared to May last year. The markets with the biggest increase in year-over-year sales percentage were Coeur d'Alene, Idaho, at 21.4%; Salt Lake City at 19.9%; and Burlington, Vermont, at 17.5%. The markets with the biggest decline in year-over-year sales percentage were Bozeman, Montana, at negative 9.1%; New Orleans, at negative 8.7%; and a tie between Cleveland and Phoenix, at negative 8.3%.

The average time houses spend on the market dropped by one day from April to 34 in May but increased by two days compared to the same month last year. Homes spent the most days on the market in Fayetteville, Arkansas, at 71; Coeur d'Alene, Idaho, at 66; and San Antonio, Texas, at 62. They sold the fastest in Washington, D.C., at 11 days on the market; Baltimore, Maryland, at 12; and a tie between Hartford, Connecticut and Manchester, New Hampshire, at 14.

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