Sales of existing homes were up again in May, the second month of increasing sales. The rise was 2.4%, pushing sales up to an annual rate of 4.77 million from 4.66 million in April. What seems to be driving the sales is cheaper prices. The median price for an existing home was $173,000, down 16.8% from $207,900 in May 2008.
Don’t get too excited about the numbers, however. Home sales always increase as we move into the summer months. Families want to move between school years, driving up sales from March through the summer months. Sales tend to decline in the fall and winter. Still, we suppose you can take some comfort that sales are following the usual seasonal rising pattern rather than continuing to fall.