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Home Resales and Inventory Surge in May

Housing has been in a slump lately, but a surge in home resales last month shows real estate may be picking up steam. Sales of previously owned U.S. homes posted the best monthly gain in nearly three years in May, according to The National Association of Realtors on Monday. Sales of existing homes increased 4.9 percent last month to a seasonally adjusted annual rate of 4.89 million homes.

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The monthly gain was the fastest since August 2011, but even with the increase, sales are still 5 percent below the pace in May 2013. A number of factors have held back sales, including rising mortgage rates, tight supply and tough lending standards. The median price of a home sold in May was $213,400, up 5.1 percent from a year ago.

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-- The Associated Press