More comprehensive uncertainty also weighed on purchasers. The Iran conflict, closure of the Strait of Hormuz, and the possibility of more interest rate hikes all added to a difficult financial image, Redfin noted.
New listings rose 1.4% month over month in May to their highest level since 2022. Overall active listings reached 1,483,839– up 0.4% from the prior month and the highest level because 2020.
Much of that supply is stagnant listings resting on the marketplace after a sluggish start to the year. More stock added to May’s sales dive, but it also signals sluggish absorption.
The average United States home sale price rose 2% year over year in May 2026 to $398,771, according to Redfin. Discount rates are ending up being somewhat less typical– 59.8% of homes offered below the original sale price, down for the 6th consecutive month.
Sellers are likewise pricing more realistically. The typical cost for new listings was essentially flat at -0.1% month over month, while list price rose 2%.