The U.S. housing market logged its slowest May for existing-home sales since 2009, confirming that elevated mortgage rates and record prices continue to chill demand even as listings rise.

What Happened: Sales slipped 0.7% from a year earlier to an annual rate of 4.03 million, the National Association of Realtors said, leaving activity about 25% below pre-pandemic norms.

Existing-home transactions inched up 0.8% from April but remained at their weakest May pace since the aftermath of the Great Recession. NAR chief economist Lawrence Yun called the numbers "very stable, but at the sluggish sales activity level."

Median prices have jumped 52% since May 2019 while wages rose only 30%, doubling a typical new buyer's monthly payment to just over $2,000, Yun said, according to NPR. The median single-family price reached $427,800 in May, up 1.3% from a year ago. Condos gained 0.7% to $371,300.

The Federal Reserve left its benchmark rate unchanged last week but signaled possible cuts later this year, prompting Yun to predict that "if mortgage rates decrease … expect home sales to increase" given stronger income growth and healthier inventories.

See also: Graham Stephan Explains The Uphill Battle For Modern Real Estate Investors: ‘You Could Rent The Same House For Half The Price’

Why It Matters: Listings jumped more than 20% year over year, with the sharpest increases in the West and South, Realtor.com data show. Redfin estimates there are now 34% more sellers than buyers nationwide and 83% more condo sellers than condo shoppers.

Homes spent an average of 27 days on market versus 51 in some overheated metros, while 26% of listings cut asking prices, according to MarketWatch and Realtor.com analyses. The condo sector is feeling the brunt, with sales down 10% from May 2024.

U.S. home sales have stayed stuck near pandemic-era lows, with April's closings falling to a six-month trough and running at just 75% of normal as 7% mortgage rates doubled the typical monthly payment for new buyers.

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