For the 3rd month in a row, May home sales rose higher than sales in the previous month. While May sales were 11.5% higher than April,
they remained below the same period last year by 9.9%. Only three of the 52 metro areas included in the May survey experienced lower sales than the previous month. Home prices continued to push higher in May, with a 7.7% increase over May 2013, which is a greater increase than the 5.8% rise seen in April. While both credit availability and inventory remain tight, May became the 6th consecutive month with fewer year-over-year inventory losses than the previous month. At the rate of home sales in May, the Months Supply of inventory dropped to 3.8, where a supply of 6.0 indicates a market balanced equally between buyers and sellers.
“The usually strong spring selling months appear to be following traditional growth patterns. We’ve now seen three straight months of increased sales over the previous month – although we may not match the growth rates we saw last year, we are seeing significant increases in both.
The rebound in negative sales growth in January and February has been significant with increases in March (24.6%), April (10.9%) and now an 11.5% increase in May. However, sales were still 9.9% below one year ago. In March, all 52 surveyed metro areas reported monthly sales increases, and that pervasive trend sales and prices and that’s a positive sign.”
Margaret Kelly, RE/MAX CEO
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