Market Overview

Existing Home Sales Up 4.9%, Beating Street Views By 3%

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Existing-home sales grew 4.9 percent nationwide in May, logging the best monthly increase since 2011 according to a brokers' group.

Sales were running at a seasonally adjusted annual rate of 4.89 million, up 4.9 percent from April, the National Association of Realtors said Monday.

Wall Street expected a May sales rate of 4.75 million, or three percent lower than the actual number.

Meanwhile, prices grew 5.1 percent from a year ago to a median of $213,400; inventory rose 2.2 percent, up six percent from a year ago.

The May inventory suggests a 5.6-month supply, which is below the six-month inventory that brokers call a balanced market.

Lawrence Yun, the group's economist, said current sales activity is rebounding after the lackluster first quarter.

“Home buyers are benefiting from slower price growth due to the much-needed, rising inventory levels seen since the beginning of the year,” Yun said. “Moreover, sales were helped by the improving job market and the temporary but slight decline in mortgage rates.”

Posted-In: News Econ #s


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