U.S. home sales rose in May

WASHINGTON, June 23 (UPI) -- Existing home sales rose for the second consecutive month for the first time since September 2005, the National Association of Realtors said Tuesday.

Sales of single-family homes, town homes, condominiums and co-ops rose 2.4 percent to a seasonally adjusted annual rate of 4.77 million units in the month of May, the association said.

From a year ago, sales were down 3.6 percent. Prices were also down substantially with the median price for all types of homes down 16.8 percent to $173,000 compared to a year ago.

Along with low prices, "historically low mortgage interest rates clearly drew buyers into the market, and housing remains very affordable even with a recent uptick in rates," NAR Chief Economist Lawrence Yun said in a statement.

"First-time buyers also are being drawn off the sidelines by the $8,000 tax credit, which is helping to absorb inventory," Yun said.

Existing home sales rose sharpest in the Midwest, up 9 percent in the month with a median price of $145,800. In the South, sales were unchanged with the median price at $157,400. In the West, sales fell 0.9 percent with a median price of $197,700. Homes sales in the Northeast, where the median price was $243,600 in May, climbed 3.9 percent.