By Kent Hoover | Phoenix Business Journal Washington Bureau
Bummed out by Thursday morning’s big drop in the Dow Jones Industrial Average? Here’s some good economic news: Existing home sales rose in May to their highest levels since November 2009, when stimulus tax breaks juiced the market.
That’s according to the National Association of Realtors, which reported existing-home sales rose 4.2 percent in May to a seasonally adjusted rate of 5.2 million.
Home prices also continue to rise — the national median existing-home price hit $208,000 in May — up 15.4 percent compared with May 2012.
Foreclosures and short sales accounted for 18 percent of May’s existing home sales, down from 25 percent a year ago.
“The housing numbers are overwhelmingly positive,” said Lawrence Yun, NAR’s chief economist.
But like economists tend to do, he added an “on the other hand” cautionary note:
“The home price growth is too fast, and only additional supply from new home-building can moderate future price growth,” he said.
