The price of the typical home resumed its steady, upward trajectory following a mid-month dip -- but the broader housing market remained buyer-friendly heading into the summer season.
The national median listing price edged up 0.2% last week compared to the same time a year ago. Meanwhile, the median price per square foot -- which accounts for changes in home sizes -- saw an annual gain of 0.9%, according to the Realtor.com® Weekly Housing Trends Report.
The modest increase came after the price retreated by 1.1% the previous week, coming on the heels of nine consecutive weeks of flat or growing prices.
"This marks a faster pace of growth than in the prior two weeks and suggests that the underlying value of homes continues to increase," says Realtor.com economist Jiayi Xu. "Still, affordability remains a challenge, as elevated mortgage rates and rising home prices put additional pressure on buyers."
For the week ending on May 29, the average rate on 30-year fixed home loans increased to 6.89%, continuing on its upward trajectory amid the confusion created by President Donald Trump's stance on the future of Freddie Mac and Fannie Mae.
According to a recent Realtor.com survey, nearly 2 out of 5 homebuyers identified budget constraints as a major barrier to homeownership, while more than 63% expected a recession within a year.
But in good news for prospective homebuyers, the spring season is drawing to a close with signs of a more favorable market for them, offering more listings, less intense competition, and relatively steady prices.
In fact, the same survey that highlighted buyers' budget concerns also revealed that fewer house hunters were worried about overbidding.
Xu says this suggests that the market is becoming less competitive and the home search "a little less stressful."
On the downside, persistently elevated mortgage rates, high home prices, and people's concerns about their personal finances and job security continue to pose significant obstacles to homeownership, especially for fresh-out-of-college young professionals.
New listings saw yet another increase of 8.2% last week compared to the same period in May 2024, suggesting that the late spring selling market remains robust.
"With more fresh inventory hitting the market, buyers have better opportunities to find a home that fits their needs -- even amid ongoing economic challenges," says Xu.
The overall number of for-sale homes nationwide surged 29.7% year over year, reflecting a strong upward trajectory.
This marks the 81st consecutive week of annual gains in active inventory. There were more than 1 million homes listed for sale last week -- the highest number since December 2019.
But while aspiring buyers have more options, the overall supply of properties continues to trail pre-pandemic levels, with the gap being especially pronounced in the Midwest and the Northeast.
Market pace remained sluggish last week, with the typical home spending five more days waiting for a buyer compared to last year.
In general, homes are selling just slightly quicker now than in 2019 but still linger on the market longer than at the height of the pandemic. This month, the average time on market stood at around 50 days, compared to 33 days in May 2021.