Housing market unchanged, Realtors say

Washington -- Existing home sales essentially were unchanged in May, which a National Association of Realtors economist said indicates the market is underperforming.

Sales of existing homes fell 0.3 percent in May to a seasonally adjusted annual rate of 5.99 million, down from 6.01 million in April, the Realtors group said in a news release Monday.

The market is underperforming when taking into account positive moves in job creation, economic growth and favorable mortgage rates, Lawrence Yun, NAR senior economist, said.

"It appears some buyers are simply waiting for more signs of stability before they get serious about getting into the market," Yun said.

Total housing inventory rose 5 percent in May to 4.43 million existing homes available for sale, representing an 8.9-month supply at the current sales pace, up from an 8.4-month supply in April.

Because of the supply of homes, "buyers have more negotiating power," which can help to offset mortgage rates, which have risen slightly but still remain low, NAR President Pat V. Combs said.

The national median existing home price was $223,700 in May, 2.1 percent below May 2006 when the median was $228,500.

Copyright 2007 by United Press International.