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Blooming Home Sales After April Showers

Existing-home sales have bloomed after the April showers, with the median days on the market at a new low and the median sales prices at a new high. The National Association of Realtors reports existing home sales totaled 5.62 million, a 1.1 percent increase from April and a 2.7 percent increase from one year prior. Inventory increased 2.1 percent to 1.96 million; though still 8.4 percent below one year prior.

Listing in the affordable price range are scarce, homes are coming off the market at an extremely fast rate and the prevalence of multiple offers in some markets are pushing prices higher. Inventory is currently at a 4.2 month supply. Existing homes average 27 days on the market in May, two fewer days than in April and five days fewer than one year ago. About 55 percent of homes sold in May were on the market for less than one month.

Tightening supplies have caused steady price growth in the existing-home market, sales are up 2.7 percent since May of last year. In fact, the supply of homes on the market fell from 4.7 months worth last May to 4.2 months last month.

The median existing-home price for all types of houses was $252,800 a 5.8 percent increase from one year ago. Although current demand levels indicate sales should be stronger, some would-be buyers are having to delay their home search because low supply is leading to worsening affordability conditions.   

Source: National Association of Realtors