Market TrendsFinancingBuying Process

Existing home sales rise 3.2% in May — first-time buyers at highest share since 2020

· Source: National Association of Realtors

What’s happening

NAR’s May 2026 existing-home sales report shows a 3.2% month-over-month increase in closed transactions — the second consecutive month of gains after a long flat stretch. The headline number that stood out: first-time buyers now represent 35% of all purchases, the highest share since June 2020. The shift is being attributed to modest inventory improvements and slight mortgage rate relief in the 6–6.5% range.

Market observers note that while the pace of sales is improving, the volume is still well below the 2021–2022 highs, and “rate-lock” (existing owners reluctant to sell their 3% mortgages) remains a structural drag on overall supply.

Why this matters if you’re buying in Florida

Florida tracked broadly with national trends in May. South Florida saw some inventory relief, particularly in the condo segment, while single-family inventory in desirable school-district ZIP codes remained tight.

For Florida buyers specifically:

  • First-timer programs are worth pursuing now. With first-time buyer share at a multi-year high, Florida Housing Finance Corporation (FL HFC) programs are seeing heightened demand. Apply early — funds are sometimes exhausted mid-year. See our Florida down payment assistance FAQ.
  • The rate environment is near its floor for now. At 6.33–6.5%, rates have dipped slightly but remain range-bound. Waiting for 5% rates may mean waiting years; running the math on today’s rates is more useful than hoping for a future drop.
  • More sellers are ready to move. The “rate-lock” effect is gradually loosening as life events (job changes, family moves, retirements) force decisions. More motivated sellers means more negotiating room for buyers, particularly on homes that have been sitting 60+ days.
  • Get pre-approved now, not later. As activity picks up, the buyers who close are the ones who move fast with financing confirmed.

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