Home resales rose by 3.2% to a 4.17 million seasonally adjusted annual rate in May from an upwardly revised 4.04 million rate in April.
Sales were also up 3.2% from May 2025 and were the fastest since December 2025.
Three of the four US regions posted month-over-month sales gains in May. There were higher sales in three of the four regions compared with a year earlier.
"More Americans are on the move, with home sales rising to the highest level since December," said NAR Chief Economist Lawrence Yun. "This is great news for the housing market and the economy. Improving affordability is helping drive this momentum."
Homes were on the market for 29 days on average, down from 32 days in the previous month but up from 27 days a year ago.
The supply of homes for sale rose to a 1.55 million level from 1.50 million in April and was up 0.6% from a year ago. The median sales price rose by 1.3% from a year earlier to its highest level for a May reading on record.
The National Federation of Independent Business' monthly sentiment index fell to 95.3 in May from 95.9 in April and 98.8 a year ago, with declines in six of the 10 components, particularly measures of current employment and future hiring plans.
NFIB also noted rising prices that are impacting smaller firms more than bigger firms.
The international trade deficit narrowed to $55.9 billion in April from $56.6 billion in March as exports rose faster than imports.
April wholesale inventories were revised higher to a 0.6% increase from a 0.5% gain in the advance reading, while wholesale sales rose by 2%, more than expected.
Combined with already released data for the retail and factory levels of distribution, business inventories are on track for a 0.5% gain while business sales are tracking up 1.2%. Both will be released on June 17, when updated retail inventory and sales estimates will be released.
Redbook reported that US same-store retail sales were up 9.1% year-over-year in the week ended June 6, faster than a 9.0% gain in the prior week as retailers reported a shift away from seasonal items.
The Q2 GDP nowcast estimate from the Atlanta Fed is for a 3.3% gain, up from the previous estimate of a 3.0% gain.