US existing-home sales climbed to their highest level since October 2022 in May 2026 — but the momentum may already be fading.
According to a June 2026 report by Redfin, the real estate brokerage owned by Rocket Companies, closed home sales rose 2.8% month over month in May. Overall sales — including both existing and newly built homes — rose 3.8% over the same period.
The gains reflected April market conditions, when mortgage rates briefly pulled back to around 6.3%. Sales that close in a given month typically reflect contracts signed four to six weeks earlier.
Why May sales jumped
Several factors drove the surge, according to Redfin:
- Rates dipped in April, prompting buyers who had been sitting out to act before costs rose again
- Buyer leverage was high — more sellers than buyers meant price cuts and concessions helped deals close
- Bay Area demand surged, with San Jose, CA up 25.7% year over year and San Francisco up 19.3%, driven by strong AI sector hiring and compensation
- South Florida contributed, with West Palm Beach, FL rising 18.3% YoY on luxury buyer demand
The divergence between markets was sharp, according to Redfin data:…