Existing Home Sales Rise

Sales of existing single-family homes rose slightly in May to an annualized rate of 4.82 million units, according to statistics compiled by the National Association of Realtors.[Click here to see the chart.] The increase reflects activity compared with that of the previous month. However, when compared with numbers for the same month a year ago, the resale level is a healthy 15% above the 4.19-million-unit pace recorded in May 1997. The NAR anticipates that sales of existing homes will come in at 4.53 million units this year. The trade group says this year's heavy activity is being fueled by increasing numbers of what it calls "nontraditional" households, including immigrants, singles, and seniors who are "trading down" to smaller living spaces. In May the median price of a home was $130,500, a 6% increase since May 1997. Prices are increasing the fastest in the Western region of the U.S. (a gain of 8.4%) and the slowest in the East (a gain of 2.3%). The NAR's website address is http://nar.realtor.com.