National Real Estate Market Update – May 2026
What Homebuyers, Sellers, and Investors Should Know Right Now
The May 2026 housing market is still being shaped by three big forces: mortgage rates, inventory, and affordability. Nationally, home prices are still rising, but buyers are more cautious. Locally in Myrtle Beach, South Carolina, the market remains active because of relocation demand, retirement moves, second-home buyers, and investors watching the Grand Strand closely.
National Housing Market Overview
The national market is not crashing. It is adjusting.
The latest National Association of Realtors data shows the median existing-home price reached $408,800 in March 2026, up 1.4% year over year. Inventory rose to 1.36 million homes, equal to about 4.1 months of supply. Existing-home sales declined 3.6% month over month and 1.0% year over year, showing that buyers are still active, but affordability is limiting how fast the market can move.
Redfin’s national housing data also shows buyers are becoming more selective. In March 2026, 25.9% of homes sold above list price, down from last year, while 17.6% of homes had price drops, up from the previous year.
New construction remains important because resale inventory is still limited. Builders are helping fill the supply gap, but higher financing costs, land costs, labor costs, and buyer affordability are keeping new-home activity uneven.
Mortgage Rate Trends and Affordability
Mortgage rates remain the biggest pressure point for buyers.
Freddie Mac reported the average 30-year fixed mortgage rate at 6.36% as of May 14, 2026, slightly lower than the prior week and below the 6.81% average from one year earlier.
MBA data showed mortgage rates rising to 6.56% for the week ending May 15, 2026, with mortgage applications falling 2.3% as buyers reacted to higher borrowing costs.
For buyers, this means monthly payment sensitivity is still real. A small rate move can change affordability quickly. For sellers, it means pricing matters. Buyers are comparing total monthly cost, not just the listing price.
Buyer Demand Signals
Buyer demand is cautious, but it has not disappeared.
Pending home sales rose 1.4% in April 2026, reaching an index level of 74.8, according to NAR data reported by the Wall Street Journal. The Northeast saw the strongest monthly gain, while the South dipped slightly month over month.
That matters because pending sales are a forward-looking signal. They tell us buyers are still writing contracts, even with higher rates and economic uncertainty.
First-time buyers remain the most challenged group. Many are dealing with higher payments, student debt, rent pressure, and limited entry-level inventory.
Housing Supply and Inventory Conditions
Inventory is improving, but we are still not in a fully balanced national market.
More homes are available than during the tightest pandemic years, but many homeowners are still locked into low mortgage rates and hesitant to sell. This keeps resale supply from rising too quickly.
Builder confidence improved in May. The NAHB/Wells Fargo Housing Market Index rose three points to 37, with current sales conditions rising to 40, future sales expectations rising to 45, and buyer traffic increasing to 25.
That is better than April, but still below the 50-point mark that signals more builders view conditions as good than poor.
Regional Differences Across the U.S.
The housing market looks different depending on where you are.
The Northeast remains tight because inventory is limited. The Midwest continues to benefit from relative affordability. The South is still supported by population growth, but some Southern markets are seeing more inventory and more buyer negotiation. The West remains the most affordability-constrained region because prices and payments are still high.
Migration continues to favor the Southeast, especially markets with lower taxes, warmer weather, retirement appeal, and lifestyle amenities. That is one reason South Carolina and Myrtle Beach continue to attract attention from out-of-state buyers.
Myrtle Beach Area Market Snapshot
Myrtle Beach is not just following the national market. It has its own local rhythm.
Redfin’s Myrtle Beach data shows that in March 2026, home prices were up 1.3% year over year, with a median sale price of about $269,900. Homes sold after an average of 120 days on market, compared with 133 days the year before. Sales volume also improved, with 177 homes sold, up from 136 the prior year.
That tells us the Myrtle Beach market is more balanced than it was during the hottest seller years, but demand is still present.
Myrtle Beach continues to attract:
retirees, second-home buyers, investors, remote workers, and buyers relocating from higher-cost states.
The local market is especially segmented. Oceanfront condos, golf course homes, new construction, and primary residences can all behave differently. A condo near the beach may face different inventory and HOA pressures than a single-family home in Carolina Forest, Market Common, or Grande Dunes.
Investor and Second-Home Market Trends
Myrtle Beach remains a major second-home and vacation-rental market.
Investors are still watching short-term rental demand, tourism traffic, HOA costs, insurance costs, and local rental rules. The opportunity is still there, but investors are being more careful than they were a few years ago.
The strongest investor interest remains in:
oceanfront condos, walkable vacation areas, golf communities, and properties with strong seasonal rental appeal.
For long-term rental investors, Myrtle Beach continues to benefit from population growth and relocation demand. Still, cash flow must be reviewed carefully because higher insurance, HOA dues, taxes, and mortgage rates can change the numbers quickly.
Outlook for the Next 6–12 Months
The next 6–12 months will likely bring a steadier market, not a dramatic boom.
Fannie Mae’s May 2026 housing forecast shows 30-year mortgage rates remaining around the low-to-mid 6% range for much of 2026, with home price growth expected to moderate rather than collapse.
That means buyers should not assume a major price drop is coming. Sellers should not assume pandemic-level bidding wars are coming back either.
The most likely path is:
modest price growth, gradually improving inventory, and continued sensitivity to mortgage rate changes.
What This Means for Buyers and Sellers in Myrtle Beach Right Now
For buyers in Myrtle Beach, this is a better market than the frenzy years. You have more choices, more room to negotiate, and more time to make decisions in certain property segments.
For sellers, the market is still strong enough to sell well, but pricing has to be realistic. Buyers are watching monthly payments closely. Homes that are clean, well-presented, and priced correctly are still moving.
For investors, Myrtle Beach remains attractive, but the numbers matter more than ever. Do not buy based on projected vacation income alone. Review HOA fees, insurance, taxes, rental history, and realistic occupancy.
About Brian Staub – Myrtle Beach Real Estate Market Expert
Brian Staub is a real estate agent in Myrtle Beach, South Carolina with Beach Properties Group Keller Williams, helping homebuyers, sellers, retirees, second-home buyers, and investors make confident real estate decisions across the Grand Strand.
Brian Staub
Beach Properties Group Keller Williams
601 21st Ave N, Myrtle Beach, SC 29577
(843) 385-6630
[email protected]
https://beachpropertiesgroup.com/
