REAL ESTATE NEWS
Total sales of existing U.S. homes posted strong gains in May, as increasing inventory continued to temper price growth and the market bounced back from a lackluster first quarter, the National Association of Realtors reported.
Existing-home sales in May rose 4.9 percent to a seasonally adjusted rate of 4.89 million from an upwardly revised 4.66 million in April, but were still down 5 percent compared to a year before, according to the trade group.
Growth in real estate image via Shutterstock.
“Homebuyers are benefiting from slower price growth due to the much-needed, rising inventory levels seen since the beginning of the year,” said NAR Chief Economist Lawrence Yun in a statement. “Moreover, sales were helped by the improving job market and the temporary but slight decline in mortgage rates.”
Total housing inventory in May continued to trend upwards, but the amount of time it would take for home supply to sell out decreased thanks to a faster pace of sales.
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The supply of homes in May rose 2.2 percent month over month to 2.28 million existing homes for sale, and was up 6 percent year over year. That represents a supply that would clear in 5.6 months at the current sales pace, down from 5.7 months in April.
“Rising inventory bodes well for slower price growth and greater affordability, but the amount of homes for sale is still modestly below a balanced market,” Yun noted. “Therefore, new-home construction is still needed to keep prices and housing supply healthy in the long run.”
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