Existing home sales increase 2.4 percent in May

Existing home sales increased in May, marking the first time home sales have increased in consecutive months since September 2005.

The 2.4 percent increase in existing home sales is smaller than initially projected, though still shows that the real estate market is picking up. The unsold home supply also decreased by 3.5 percent to 3.80 million. The supply of unsold homes had not decreased in earlier months this year, even when home sales had increased.

USA Today carried the Reuters article on the increase in existing home sales, which noted:

"The National Association of Realtors said sales rose 2.4% to an annual rate of 4.77 million units from a downwardly revised 4.66 million pace in April. That compared to market forecasts for a 4.81 million-unit pace. However, sales increased for a second straight month in May."

Read the entire USA Today article here.

As noted in an earlier blog entry, pending home resales increased in April for the fourth time in five months.