NAR: May Existing Home Sales

The National Association of Realtors May Existing Home Sales numbers are out. Total housing inventory levels rose 5.5 percent at the end of May to 3.604 million existing homes available for sale, from April 2006 when inventory stood at 3.415 million. In May, there was a 6.5-month supply of inventory at the current sales pace. Inventory has risen 41% from May 2005 when it stood at 2.556 million.

Total existing-home sales– including single-family, townhomes, condominiums and co-ops – eased 1.2 percent to a seasonally adjusted annual rate of 6.67 million units in May from a pace of 6.75 million in April, and were 6.6 percent below the 7.14 million-unit level in May
2005.

The national median existing-home price for all housing types was $230,000 in May, up 6.0 percent from May 2005 when the median was $217,000.

Single-family home sales slipped 1.5 percent to a seasonally adjusted annual rate of 5.82 million in May from 5.91 million in April, and were 6.6 percent below the 6.23 million-unit level in May 2005. The median existing single-family home price was $229,700 in May, up 6.4 percent from a year ago.

The National Association of Realtors used the term 'eases' to describe the month over month seasonally adjusted 1.2% drop in existing housing unit sales. Ok.

It's the Inventory Stupid! Nationally, inventory has increased by 41% from last May, and a full 5.5% from April 2006. In the bubble markets, the growth in inventory is a much greater percentage. Keep your eyes on that inventory!