Existing-Home Sales Up 3.2% in May

Existing-home sales increased by 3.2% month-over-month and year-over-year, the National Association of Realtors reported Tuesday.

The NAR Existing-Home Sales report noted month-over-month sales increased in the Northeast, Midwest and South, and were unchanged in the West. Year-over-year sales rose in the Midwest, South, and West, and fell in the Northeast.

“More Americans are on the move, with home sales rising to the highest level since December. This is great news for the housing market and the economy,” NAR Chief Economist Lawrence Yun said.

Yun noted improving affordability is helping drive this momentum. “Even with mortgage rates ticking up compared to earlier in the year, they remain lower than a year ago and are essentially at the long-term historical average. Income gains are also outpacing home price growth by a small margin in most parts of the country,” he said.

Yun added that a new record-high May home price reflects solid fundamentals for homeowners as well as ongoing supply constraints. “Only 1% of all home sales involved a foreclosure or an underwater situation in which the sale price could not cover the outstanding mortgage balance,” he said. “This shows that homeowners are on solid financial footing.”