WASHINGTON (6/23/15)--Driven by an increase in first-time homebuyers, existing-home sales jumped 5.1% in May, exceeding analyst expectations and adding to a recent wave of positive housing market data (Economy.com June 22).

The climb in total sales, which rose 9.2% on an annual basis in May, was led by single-family home sales, which increased by 5.6% during the month. Condo and co-op sales climbed a modest 1.6%.

Meanwhile, after a lengthy absence from the market, first-time homebuyers played a huge rule on the upswing during the month, accounting for 32% of sales, roughly a 5% year-over-year increase.

“Thanks to more or less steady increases since early 2014, existing-home sales transactions are back to their mid-2013 peak when investor and second-home purchases were a much larger share of the market,” said Andres Carbacho-Burgos, Moody’s analyst (Economy.com).

The composition of home demand is on more of a sustainable track because of the higher share of first-time buyers, Carbacho-Burgos added. 

Sales in the Northeast jumped 11.3% in May and 11.3% on an annual basis. In the Midwest, sales rose 4.1% during the month and 12.4% annually, and in both the South and West they rose 4.3% in May.

Additional numbers from the report:

• Existing-home inventory rose by 3.2% to 2.29 million during the month;
   
• The not-seasonally adjusted median sales price for single-family homes in May was $230,300, an 8.6% jump annually; and
   
• The largest year-over-year increase in median sales prices was in the West, though all four regions saw strong gains.

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