May Market Recap: Buyers Catch a Break (Sort Of)
It’s amazing what a bit of economic stability and an extra helping of inventory can do. After a sluggish April that had buyers and sellers alike wondering if the housing market had hit the snooze button, May brought some much-needed momentum.
Thanks to more stable economic conditions and a noticeable surge in available homes, sales got a boost in May. Buyers had more options and slightly lower mortgage rates than this time last year. Sounds promising, right? Well, not so fast. While activity picked up, sales still lag behind historical norms as many buyers continue to wrestle with affordability challenges that feel a bit like trying to squeeze into last year’s jeans after the holidays.
April Showers Brought... Trade Tariffs and Market Jitters
Let’s rewind for a moment. April’s newly pending sales were slower than expected, dropping 2.5% compared to the year before. The culprits? Economic uncertainty driven by trade tariffs and a rocky stock market. But once tariff anxieties eased and the S&P 500 found its footing again in May, buyers got back in the game. Newly pending sales rose 3.5% over April, inching up 0.9% from last year.
Buyers Are Finally Getting Choices — And Time to Think
If you’re a buyer, May was likely the first time in a while that you could take a breath and actually consider your options before making an offer. Inventory climbed nearly 20% compared to last year, giving buyers more choice than at any time since July 2020.
The market isn’t as frenzied as we’ve seen in recent years. Sellers still outnumber buyers, which means more negotiating power on the buyer side and, dare we say it, fewer bidding wars that feel like reality TV show competitions. Zillow’s market heat index shows things have cooled to a balanced market — a refreshing change of pace.
Home Values, Price Cuts, and How Long It’s Taking to Sell
Here’s where things get interesting:
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Home values have dipped in 22 of the 50 largest metro areas over the past year.
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Nearly 26% of listings nationwide had a price cut in May — the highest May figure in Zillow’s records.
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About 30% of homes sold above list price in April, up slightly from March, but down from 33.3% a year ago.
And while homes are still moving relatively quickly, the median time to go pending was 17 days in May — up about four days from last year, but still faster than your average contractor’s return call.
Inventory and Listings: The Big Picture
New listings rose by 4.8% month over month in May, and total inventory grew by 7.4% from April. Compared to last year, active listings were up nearly 20%. But before we break out the confetti, it’s important to note that total inventory levels are still about 20% lower than what we saw pre-pandemic.
The median age of inventory in May was 50 days, a sign that while homes are sitting a bit longer, it’s not a return to the slow markets of yesteryear.
Is Renting the Smarter Play Right Now?
Here’s a plot twist: For many would-be buyers, renting a starter home actually makes more financial sense — at least in the short term. Nationwide, rent for a typical single-family home is about $100 cheaper per month than a mortgage payment on the typical U.S. home (even after a 10% down payment).
To put that in perspective: six years ago, renting cost about $373 more per month than buying. That shift helps explain why housing demand continues to bounce along the bottom like a kid’s yo-yo — buyers want to buy, but many are waiting for the math to make more sense.
Key Stats at a Glance
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Typical U.S. home value: $366,289
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Typical mortgage payment (20% down): $1,922/month
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New listings (May): +4.8% month over month, +4.5% year over year
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Total inventory (May): +7.4% month over month, +19.6% year over year
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Listings with price cuts: 25.8% (highest May percentage on record for Zillow)
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Median days to pending: 17 days
Bottom Line: A Buyer’s Market? Almost... But Not Quite
May gave buyers a little more breathing room and negotiating power, but affordability challenges and market uncertainty still loom large. The good news? If you’re patient, prepared, and working with a solid agent, the market today offers more opportunities — and fewer bidding wars — than we’ve seen in quite some time.
In other words, the market is cooling, but it’s not cold. And for those looking to make a move, that might be the sweet spot.
Wyatt Poindexter - The Agency Oklahoma
***Data gathered from Zillow***
