Resales Edge Down in May

Single-family existing-home sales edged down 0.8% in May as the spring sales season began drawing to a close and the inventory of unsold homes rose to an 8.7-month supply, according to the National Association of Realtors.The Realtors reported that sales fell for the third consecutive month to a seasonally adjusted annual rate of 5.20 million in May, down from 5.24 million in April. Compared with those of April 2006, sales of previously owned homes were down 10.8%. NAR senior economist Lawrence Yun noted that the downturn in the housing market has made consumers reluctant to buy, and household formation has "slowed dramatically" since late 2006. He also said tighter subprime lending standards continue to be a "drag" on sales. The median sales price of a single-family home was $223,000 in May, down 2.4% from that of May 2006. Meanwhile, the NAR reported that condominium/cooperative sales rose 2.3% in May and that the median sales price stood at $228,200, down 0.4% from that of a year earlier. The NAR can be found online at http://www.realtor.org.