US home sales increase in May

Associated Press

WASHINGTON

More Americans bought homes in May, a sign of economic strength that is pushing up average prices.

The National Association of Realtors said Monday that sales of existing homes climbed 5.1 percent last month to a seasonally adjusted annual rate of 5.35 million. May was the third-consecutive month of the sales rate exceeding 5 million homes, putting home-buying on pace for its best year since 2007.

Solid hiring since 2014 and relatively low mortgage rates have stirred up demand and helped generate more first-time buyers, though rising sales have fueled spiking prices because relatively few properties are listed for sale.