Summary Existing-home sales increased 3.2% in May, reaching their highest level since December according to the National Association of REALTORS®. Housing inventory also increased, affordability improved across all four U.S. regions, and first-time buyer activity climbed. While mortgage rates remain elevated compared to pre-pandemic levels, they are lower than they were a year ago, helping more buyers return to the market. For buyers and sellers in Wilmington, NC and Southeastern North Carolina, these trends point to a housing market that remains active while becoming more balanced than it was during the inventory shortages of recent years.

Why Did Existing-Home Sales Increase in May?

Existing-home sales rose 3.2% from April and 3.2% compared to May 2025, reaching a seasonally adjusted annual rate of 4.17 million homes. This marked the strongest month for existing-home sales since December. Several factors contributed to the increase:

• More homes became available for sale.
• Affordability improved compared to one year ago.
• Mortgage rates remained lower than last spring.
• Income growth continued in many areas.
• Buyers gained more choices than they had during the inventory shortages of 2021 and 2022.

According to NAR Chief Economist Lawrence Yun, improving affordability is helping drive renewed buyer activity. While affordability remains a challenge in many markets, conditions have improved enough to bring more buyers off the sidelines. In Wilmington and the surrounding Cape Fear region, many buyers who paused their search during periods of limited inventory are finding more opportunities as listings increase across New Hanover, Brunswick, and Pender Counties.

What Does Rising Housing Inventory Mean for Buyers?

One of the most important takeaways from the report is the continued growth in housing inventory. Nationally:

• 1.55 million homes were available for sale in May.
• Inventory increased 3.3% from April.
• Inventory increased 0.6% compared to one year ago.
• The market had a 4.5-month supply of homes.

More inventory creates more opportunities for buyers. Benefits of increased inventory include:

• More homes to choose from.
• More time to compare properties.
• Reduced pressure to make immediate decisions.
• Greater ability to negotiate repairs, closing costs, or other terms.

In Wilmington, buyers are seeing a wider variety of options than they did a few years ago. However, inventory remains highly dependent on location and price point. Homes in desirable coastal communities such as Carolina Beach, Kure Beach, Wrightsville Beach, and Oak Island may still experience stronger competition than national averages suggest.

Why Are More First-Time Buyers Entering the Market?

First-time buyers accounted for 35% of all home purchases in May. That's notable because:

• First-time buyers represented 33% of sales in April.
• First-time buyers represented 30% of sales one year ago.

This increase suggests that improving affordability and growing inventory are helping more buyers enter the market. For first-time buyers in Southeastern North Carolina, several factors continue to influence affordability:

• Mortgage interest rates.
• Property insurance costs.
• Down payment requirements.
• Property taxes.
• HOA fees in some communities.

While affordability challenges remain, more inventory often gives first-time buyers additional opportunities to find homes that fit their budget and goals.

Existing Home Sales Reach Highest Level Since December

Are Home Prices Still Rising Despite More Inventory?

Home prices continue to rise nationally despite growing inventory. The median existing-home price reached a record-high $429,300 in May. Additional pricing data includes:

• Median price increased 1.3% year-over-year.
• Home prices have increased annually for 35 consecutive months.
• Single-family home prices rose 1.3%.
• Condo and co-op prices rose 1.7%.

This trend demonstrates that inventory growth has not led to widespread price declines. Instead, the market is transitioning toward slower, steadier appreciation. For homeowners in Wilmington and Southeastern North Carolina, this is generally positive news. Rising inventory creates more balance while continued appreciation helps homeowners build equity. The result is often a healthier market than the rapid price swings experienced during the pandemic housing boom.

How Are Mortgage Rates Affecting Buyer Demand?

Mortgage rates continue to play a major role in buyer activity. According to Freddie Mac:

• The average 30-year fixed mortgage rate was 6.44% in May.
• The average rate was 6.33% in April.
• The average rate was 6.82% one year ago.

Although rates increased slightly compared to April, they remain below year-ago levels. Many buyers have adjusted to the reality that mortgage rates may not return to the historically low levels seen during 2020 and 2021. As a result, more buyers are making purchasing decisions based on their personal needs rather than waiting indefinitely for lower rates. In the Wilmington area, relocation buyers continue to be an important source of demand. Many are moving from higher-cost markets and bringing significant home equity with them, helping offset the impact of higher mortgage rates.

What Do These Trends Mean for Sellers?

The latest housing data offers several positive signs for sellers. Current market strengths include:

• Existing-home sales are increasing.
• Home values continue to appreciate.
• Distressed sales remain extremely low.
• Buyer demand remains healthy.
• First-time buyer participation is growing.

However, today's market is different from the seller-driven environment of several years ago. Buyers now have more choices, making proper pricing more important than ever. Sellers should focus on:

• Accurate pricing.
• Professional photography.
• Strong online marketing.
• Completing deferred maintenance.
• Preparing for inspections.

Homes that are priced appropriately and presented well continue to attract strong interest throughout the Cape Fear region.

Should Buyers Wait for Mortgage Rates to Fall?

This remains one of the most common questions in real estate. The reality is that no one can predict future mortgage rates with certainty. Buyers who wait may benefit if rates decline. However, they could also face:

• More competition.
• Higher home prices.
• Fewer negotiating opportunities.

Buyers who begin their search now may benefit from:

• More inventory.
• Greater negotiating leverage.
• Less competition than may occur if rates fall significantly.

For most buyers, the better question is whether they are financially prepared to purchase a home rather than whether they can perfectly time the market.

Key Takeaways for Wilmington Area Buyers and Sellers

The latest existing-home sales report highlights a housing market that remains active while gradually becoming more balanced. The biggest takeaways include:

• Existing-home sales increased 3.2%.
• Sales reached their highest level since December.
• Inventory increased to 1.55 million homes.
• Affordability improved nationwide.
• First-time buyer participation rose to 35%.
• Home prices continued to increase.
• Mortgage rates remained below year-ago levels.

For buyers, growing inventory creates more opportunities and flexibility. For sellers, demand remains healthy, but pricing and presentation matter more than they did during the inventory shortages of recent years. Most importantly, real estate remains local. While national trends provide valuable context, conditions in Wilmington, Leland, Hampstead, Rocky Point, Carolina Beach, Kure Beach, and surrounding communities can vary significantly from national averages. For additional local market insights, check out our Wilmington Real Estate Market Updates and community guides covering New Hanover, Brunswick, and Pender Counties.