The brief:

- Existing U.S. home sales rose 3.2% in May, reaching their fastest pace since December.
- The median home price climbed 1.3% from a year earlier to a record $429,300 for May.
- Improving affordability and higher inventory helped boost buyer demand despite elevated mortgage rates.


Sales of existing U.S. homes surged last month, reaching their highest level since December and marking a strong rebound in demand after a sluggish start to the spring homebuying season.

By the numbers: Existing home sales rose 3.2% in May from the previous month to a seasonally adjusted annual rate of 4.17 million units, the National Association of Realtors said Tuesday. Sales also rose 3.2% compared with May last year.

Home sales increased from a year earlier in the Midwest, South and West, but fell in the Northeast, NAR said.

The latest sales figure topped the roughly 4.07 million pace economists were expecting, according to FactSet.

Home sales have been mostly hovering close to a 4-million annual pace going back to 2023, far short of the historic norm that is closer to 5.2-million.

Sales rose last month even as mortgage rates have continued to mostly trend higher this spring, although they remain below where they were a year ago.

Home prices continued to rise nationally last month. The U.S. median sales price increased 1.3% in May from a year earlier to $429,300, an all-time high for any May on data going back to 1999, NAR said. Home prices have risen on an annual basis for 35 months in a row.
 
Source: foxla.com