May Existing-Home Sales Rise
Existing-home sales rose to an annual rate of 4.99 million units in May, which is 2.0 percent higher than the 4.89 million units in April, but 15.9 percent below the 5.93 million-unit level of a year ago, National Association or REALTORS (NAR) announced this morning. The median existing-home price was $208,600 in May, which is a 6.3 percent decline from May 2007.
Total housing inventory fell 1.4 percent last month to 4.49 million homes available for sale. This represents a 10.8-month supply, down from an 11.2-month supply in April.
Existing-home sales in May increased month-over-month in the Midwest by 5.5 percent, in the Northeast by 4.6 percent, and in the West by 2.0 percent. But sales slipped 0.5 percent in the South. All four regions posted big declines compared to a year ago: 16.5 percent in the Midwest; 15.0 percent in the Northeast; 12.8 percent in the West; and 17.0 percent in the South.
NAR chief economist Lawrence Yun the high level of inventory should take several months to decline, and that foreclosures and short sales “are creating a drag on current home prices.”
