US home sales rise

US home sales rise
The Economic Times, June 25, 2009, Page 4

Reuters WASHINGTON

SALES of previously owned US homes rose for a second straight month in May but were weaker than expected, adding to growing fears of an anemic economic recovery from a deep recession.

The chief economist of the National Association of Realtors, which released the data on Tuesday, said sales in some areas appeared to be slowing and warned of the danger of a “delayed” housing market recovery. The Realtors’ group said sales climbed 2.4% last month to an annual rate of 4.77 million units. While that pace was below market forecasts it was the second straight month sales had risen, for the first back-to-back gain since September 2005.

Despite signs the market is stabilizing, the NAR said the median national home price fell 16.8% in May from a year earlier, the third-largest drop on record.