Housing markets throughout the nation continued to recover at a modest pace in May, according to the National Association of Realtors' May Existing-Home Sales report.
Home sales declined slightly for the month, decreasing by 1.5 percent, but showed a year-over-year increase of 9.6 percent. Housing inventory levels contributed greatly to both sales and home prices. Total housing inventory fell 0.4 percent for the month and is 20.4 percent below the inventory level in May 2011.
The decreased inventory was a greater factor in the decline of monthly sales for the real estate market than home buyer demand, the report stated.
"The slight pullback in monthly home sales is more likely due to supply constraints rather than softening demand," said Lawrence Yun, NAR's chief economist.
The decreased inventory levels further signified the movement toward a seller's market. Fewer homes for sale on the market helped to push the median price level up to $182,600, a 7.9 percent increase from May 2011.
The increased median price level was also attributed to a reduction in distressed inventory for the month. The distressed inventory level declined to 25 percent in May from 28 percent in April and 31 percent in May 2011.
