Existing Home Sales, Median Prices Increase in May
WASHINGTON (Dow Jones) -- Existing-home sales improved again in May, but falling prices and bloated supply promise to make a housing sector recovery slow.
MP: That's one way to look at it. Here are some alternative views:
1. The April to May increases in median home prices (3.84%) and mean home prices (3.26%) were the largest monthly price increases in more than a year (data here).
2. The monthly May increase in both median home prices (3.84%) and homes sold (2.36%) was only the second time in at least a year that both prices and unit sales increased in the same month.
3. The back-to-back increase in home sales in both April and May is the first time in at least a year of two consecutive monthly increases.
4. The most recent two-month increase in sales of 4.84% is the largest since April 2004 (source).
5. The 9.6 months supply of inventory in May is below last year's May level of 10.9 months by more than five weeks, and is at the second-lowest level in the last year.
According to Brian Wesbury and Bob Stein:
The data today are consistent with our outlook that the economy is recovering from a panic. Home sales, building activity, and the rate of decline in home prices all seem to be bottoming or have already formed a bottom. In fact, the level of existing home sales in May was the highest since October 2008.