Palm Bay home sales dropped 7.6% in May 2026 compared to the same period in 2025, with 1,110 homes sold, according to Redfin Real Estate analysis. This decline comes as the U.S. housing market overall saw a 5.2% increase in sales during the same timeframe. Local real estate agents say the slowdown reflects broader national trends but with unique regional factors. "The market is definitely slower than it was a few years ago," said Sarah Thompson, a licensed real estate agent in Palm Bay. "Buyers are more cautious, and sellers are taking longer to price homes right." Redfin's data shows 5,648 active listings in Palm Bay as of May 2026, a 16.4% decrease from the previous year. The median days on market stood at 67, down three days from 2025 but still higher than the national median of 49. Only 8.8% of homes in Palm Bay sold above their original list price, compared to 25.8% nationally. Pending sales in the city rose 3.1% year-over-year to 1,430, indicating some buyer interest despite the overall decline. However, 52.9% of listings remained unsold after 60 days, a figure that has improved slightly from 2025 but still highlights inventory challenges. The national market saw active listings increase 0.7% year-over-year to 1.48 million, with 53.1% of inventory unsold after 60 days. Local experts note that Palm Bay's slower sales contrast with some lower-cost areas nationwide that have seen surges in activity. "It's not just about prices," said Thompson. "Interest rates and economic uncertainty are keeping people on the sidelines." Redfin's analysis, which uses metrics like pending sales, active listings, and days on market, shows Palm Bay's housing market remains in a transitional phase. With median home prices in the city holding steady around $325,000, buyers and sellers are navigating a more balanced but still cautious market compared to the pandemic-driven frenzy of 2020-2022.