U.S. Existing-Home Sales Rise in May Despite Tight Supply

Sales increased 1.1% from April and the median sales price jumped 5.8%

Existing-home sales rose 1.1% in May from the prior month to a seasonally adjusted annual rate of 5.62 million, the National Association of REALTORS® said Wednesday. Economists had expected a modest decline from April. Compared with a year earlier, sales were up 2.7% last month.

“The way to solve this housing shortage, housing crisis that is developing, is to just build more homes,” said Lawrence Yun, Chief Economist for the National Association of REALTORS®.

The median sales price in May was $252,800, the highest nominal level on record and up 5.8% from a year earlier. There was a 4.2-month supply of homes on the market at the end of the month, based on the current sales pace. Inventory has declined on a year-over-year basis for 24 straight months.

The median property remained on the market just 27 days in May, the shortest time since the trade group began tracking the metric six years ago.

“Right now we’re in a true seller’s market,” said Mark Trenka, owner of Century 21 Trenka Real Estate in Denver. He said a home in the city was brought onto the market Saturday, had 30 showings and attracted 10 offers in one day—and was under contract Sunday.

Colorado’s unemployment rate was a record-low 2.3% in May, according to the Labor Department. That, together with low inventory, is helping drive a “really competitive” environment, Mr. Trenka said.

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