The spring recovery in home sales gained further ground in May. Signed contracts to buy existing homes surged 6.1 percent from April, as home prices began to ease slightly. This is the largest monthly gain since April 2010, just before the end of the popular first-time home buyer tax credit. Despite the monthly gain, the so-called Pending Home Sales Index from the National Association of Realtors is down 5.2 percent from May of 2013.
"Sales should exceed an annual pace of five million homes in some of the upcoming months behind favorable mortgage rates, more inventory and improved job creation," said Lawrence Yun, chief economist for the Realtors. "However, second-half sales growth won't be enough to compensate for the sluggish first quarter and will likely fall below last year's total."