In May, total existing homes sales rose 12.9 percent from May 2012 to 5.18 million units, according to the National Association of Realtors. This is a 4.2 percent increase from April. The median home price for all housing types was $208,000, up 15.4 percent from the year before, marking the sixth straight month of double-digit price increases, the 15th consecutive month of year-over-year increases and the strongest gain since October 2005.
Total housing inventory rose 3.3 percent at the end of May to 2.22 million existing homes on the market. This represents a 5.1-month supply, which is 10.1 percent below the May 2012 level.
"The housing numbers are overwhelmingly positive. However, the number of available homes is unlikely to grow, despite a nice gain in May, unless new home construction ramps up quickly by an additional 50 percent," said NAR chief economist Lawrence Yun in a statement. "The home price growth is too fast, and only additional supply from new homebuilding can moderate future price growth."
The NAR's full housing report is available here.
