Existing home sales up 4.9%; best gain since '11

 

Existing home sales rose for the second-straight month in May - climbing to their strongest pace since fall - as more homes on the market helped draw buyers.

Sales of single-family homes, townhomes, condos and co-ops hit a seasonally adjusted annual rate of 4.89 million, up 4.9% from April's revised 4.66 million rate, the National Association of Realtors said Monday.

The monthly percentage gain was the highest since August 2011. Last month's sales rate also beat economists' median forecast of 4.73 million in Action Economics' survey.

"The long-awaited spring bounce in home sales looks to have finally appeared," said RBS Markets chief U.S. economist Michelle Girard in a research note.

Both sale prices and inventory improved last month, which is a good sign, said Stephanie Karol, of IHS Global Insight.

"As long as sellers feel assured of making a profit, they will feel emboldened to list their homes; and as buyers feel they have a good selection of well-located properties to choose from, they will continue to look and bid," she said in a research note.

Despite sales' improving trend the past two months, they are still weaker than last year. In May 2013, the annualized sales rate was 5.15 million.Through May, sales are down 8.2% from the first five months of last year.

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