Sales of existing homes increases

Sales of existing homes increased 2% in May to a seasonally adjusted rate of 4.99 million units, according to the National Association of Realtors in Chicago. That followed a pace of 4.89 million existing homes purchased in April but remained 15.9% below the 5.93-million-unit pace recorded in May 2007. Single-family home sales rose 1.6% to a seasonally adjusted annual rate of 4.41 million in May but were 14.5% below the 5.16-million-unit pace in May 2007. Sales of existing condominiums and co-ops increased 5.5% to a seasonally adjusted annual rate of 580,000 units in May but were 24.6% lower than the 769,000 level a year ago. “Homebuyers are starting to get off the fence and into the market, drawn by drops in home prices in many areas and armed with greater access to affordable mortgages,” said NAR president Richard F. Gaylord, according to a statement. The median price of existing homes was $208,600 in May, down 6.3% from May last year when the median was $222,700. Home inventories fell 1.4% at the end of May to 4.49 million existing homes available for sale, which represents a 10.8-month supply, down from a 11.2-month supply in April. Regionally, existing-home sales rose 5.5% in the Midwest, 4.6% in the Northeast and 2% in the West. Sales fell 0.5% in the South.