Sales volume rose 10.8% month over month to $3.46 billion, while the number of units sold rose 8.2% over the same period, to 8,230.

Strong growth of single-family construction spending drove the increase, while spending on multifamily construction was flat, the National Association of Home Builders said.

The median age of construction workers is 41, the same as a typical worker in the national labor force, according to the National Association of Home Builders’ analysis of the most recent 2019 American Community Survey data.

“May’s strong increase in transactions — following April’s decline, as well as a sudden erosion in home affordability — was indeed a surprise. The housing market is attracting buyers due to the decline in mortgage rates, which fell below 3%, and from an uptick in listings.” — NAR chief economist Lawrence Yun

In Atlanta, the index rose 1.7% month over month and 12.3% year over year. The monthly increase was slightly down from the 1.8% rise recorded in March.

The seasonally adjusted estimate of new houses for sale at the end of May was 330,000, representing a supply of 5.1 months at the current sales rate, the U.S. Census Bureau and the Department of Housing and Urban Development reported. 

The median existing-home price for all housing types rose to $350,300 in May, marking another new record. 

Market competition has eased up recently, but seven in 10 buyers still face bidding wars, according to a new report from Redfin.

On a year-over-year basis, new-home mortgage applications were down 5.9% in May, the Mortgage Bankers Association reported, citing its Builder Application Survey.

Single-family housing starts were up 4.2% from April and 49.8% from May 2020, at 1,098,000, according to the U.S. Census Bureau and Department of Housing and Urban Development.

While pending sales are up 29% year over year, they are starting to slow and have fallen 9.7% from their peak.

Increasing costs and the declining availability of key building materials dampened builder sentiment, as higher costs have pushed some new homes beyond the budget of prospective buyers. 

Expert panelists from Zillow’s Home Price Expectations Survey say if changes aren’t made, new construction growth will stall, home prices will continue to increase, and less of today’s 30-somethings will have the ability to own a home.

Rising property values had homeowners cashing out of their existing residences to buy bigger homes in less-expensive areas last year.

With half of all homes in today’s market selling above the asking price, the timing of when to list can have an impact on both time on market and sale price.

Home-price growth remained in double digits for the 10th straight month in May, as inventory lows pushed the median listing prices up 15.2% from last year.