🏠 [Global Report]
Second Week of May 2026 Market Update
Even as the spring moving season begins across the United States, the existing-home sales market remains largely stagnant due to a persistent shortage of available inventory.
According to the latest report from the National Association of REALTORS® (NAR), existing-home sales in April 2026 increased only slightly by 0.2% from the previous month, showing that the market is still struggling to gain momentum.
📊 Key Market Indicators at a Glance
April 2026
Existing-home sales: Up 0.2% month-over-month, essentially flat
Median existing-home price: $417,700, up 0.9% year-over-year
Housing inventory: Up 6% from the previous month, but only slightly higher year-over-year, showing that supply remains limited
Average mortgage rate: 6.33%, lower than the same period last year, offering some relief to buyers
🔍 Market Analysis
1. “There Are Not Enough Homes to Buy” — Inventory Shortage Keeps Sales Low
Despite the typical seasonal increase in buyer activity during spring, home sales have not increased significantly. The main reason is simple: there are still not enough desirable homes available on the market.
Lawrence Yun, Chief Economist at NAR, noted that the market is receiving mixed signals, with a strong stock market on one side and low consumer confidence on the other. In other words, even though some affordability conditions have improved, many buyers remain cautious.
2. New Construction Becomes a More Attractive Option
One of the most notable trends is that more buyers are turning to newly built homes instead of existing homes.
In a rare market situation, the median price of newly built homes was reported at around $387,400, which is approximately $30,000 lower than the median price of existing homes at $417,700.
Builders are also offering aggressive incentives, such as mortgage rate buydowns and closing cost assistance, to attract buyers. These incentives are helping make new construction more appealing in many parts of the country.
However, this trend does not fully apply to New Jersey, especially North Jersey, where land is limited and new construction inventory remains very tight.
3. First-Time Buyers Are Slowly Returning
Despite ongoing affordability challenges, first-time homebuyers made up 33% of all transactions. This may be a sign that buyer purchasing power is slowly improving as wage growth begins to outpace home price growth.
📍 Regional Sales Trends
Midwest: Sales increased by 2.2%, showing modest improvement.
South: Sales rose by 0.5%, also showing slight growth.
Northeast: Sales remained unchanged from the previous month, but prices increased 4.8% year-over-year, the strongest regional price growth in the country. This is especially relevant to New Jersey.
West: Sales declined by 2.6%, although home prices remain the highest in the country, with a median price of around $619,600.
💡 One-Line Newsletter Summary
The U.S. existing-home market remains slow due to limited inventory, but lower mortgage rates and builder incentives are making new construction an attractive alternative in many regions. However, in New Jersey and the Northeast, limited supply continues to support strong home prices.
This report is based on the National Association of REALTORS® existing-home sales report for April 2026.