West, Northeast drive spike in home sales activity

Sales volume up 0.9 percent in May compared to April, according to NAR

Pending home sales activity hit a nine-year high during May, according to the National Association of Realtors. Sales volume increased by 0.9 percent in May when compared to April and by 10.4 percent when compared to May 2014. Activity has now increased on a year-to-year basis for nine straight months, with month-to-month increases occurring each of the last five months. Jonathan Smoke, chief economist at realtor.com, says this data suggests that further increases in new- and existing-home sales will occur during June and the rest of the summer. “We’re finally beginning to see an uptick in supply as sellers become more confident about home prices,” Smoke said. As supply expands, Smoke predicts an increase in the number of first time homebuyers – a larger percentage of whom will be millennials. Lawrence Yun, NAR’s chief economist, warns that this year’s stronger sales, amidst similar housing supply levels from a year ago, have caused home prices to rise to an unh...