Existing home sales hit record in May, reports NAR

Existing single family home sales rose in May to the highest monthly pace on record, according to the National Association of Realtors. Existing home sales increased 2.6 percent to a seasonally adjusted annual rate of 6.8 million units in May from a level of 6.63 million units in April. Last month's sales activity was 15.8 percent above the 5.87 million unit pace in May 2003; the previous record was 6.68 million in September 2003.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.27 percent in May, up from 5.83 percent in April; it was 5.48 percent in May 2003.

The national median existing-home price was $183,600 in May, up 10.3 percent from May 2003 when the median price was $166,400. The median is a typical market price where half of the homes sold for more and half sold for less.

Housing inventory levels at the end of May rose 0.8 percent from April to a total of 2.38 million existing homes available for sale, which represents a 4.2-month supply at the current sales pace.

Regionally, existing home sales in the West rose 5.5 percent in May to a record annual rate of 1.93 million units, and were 22.9 percent above May 2003. The median existing-home price in the West was $257,900, up 12.3 percent from a year ago.

The existing home sales pace in the South increased 3.8 percent in May to a record annual rate of 2.75 million units, and was 19 percent above the same month a year ago. The median price of an existing home in the South was $168,500, which was 9.4 percent higher than May 2003.

Existing home sales in the Midwest slipped 0.7 percent in May to an annual rate of 1.40 million units, second only to a record 1.41 million in April, and were 6.1 percent above a year ago. The median price in the Midwest was $152,700, up 10.2 percent from May 2003.

Existing home sales in the Northeast declined 1.4 percent from April to a pace of 720,000 units in May, but were 7.5 percent higher than May 2003. The median resale price in the Northeast was $213,200, up 18.6 percent from a year ago.