As existing home sales rise, median home price hits new high

Existing home sales rebounded in May as low inventory levels pushed median home prices to a new high, according to the latest report from the National Association of Realtors.

And as competition increased, the median days a home is on a market sank to a new low, the report showed.

Total existing home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 1.1% to a seasonally adjusted annual rate of 5.62 million in May. This is down from a downwardly revised 5.56 million in April.

This sales pace is an increase of 2.7% from last year, and the third highest pace over the past year, the report showed.

“The job market in most of the country is healthy and the recent downward trend in mortgage rates continues to keep buyer interest at a robust level,” NAR Chief Economist Lawrence Yun said. “Those able to close on a home last month are probably feeling both happy and relieved.”

“Listings in the affordable price range are scarce, homes are coming off the market at an extremely fast pace and the prevalence of multiple offers in some markets are pushing prices higher,” Yun said.

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