Existing-home sales increased sharply in May, and inventory gains continued to moderate price growth, according to the National Association of Realtors.
Total existing-home sales rose 4.9 percent to a seasonally adjusted annual rate of 4.89 million in May from 4.66 million in April, while remaining 5.0 percent below the 5.15 million-unit level seen in May 2013. Still, the 4.9 percent month-over-month gain in May was the strongest monthly rise since a 5.5 percent increase was seen in August 2011.
"Home buyers are benefiting from slower price growth due to the much-needed, rising inventory levels seen since the beginning of the year," said Lawrence Yun, NAR chief economist, in a statement. "Moreover, sales were helped by the improving job market and the temporary but slight decline in mortgage rates."
Also in the NAR's data:
- Total housing inventory at the end of May increased 2.2 percent to 2.28 million existing homes for sale, a 5.6-month supply.
- The median existing-home price for all housing types in May was $213,400, a 5.1 increase in year-over-year.
- Unsold inventory is 6.0 percent higher than a year ago.
- Percentage share of first-time buyers underperformed, representing less than one-third of all buyers in May.
