Mubasher: US home sales recorded the first gain in two months in May, with increases seen in the four major US regions, data showed on Friday.

Total US existing home sales climbed by 2.5% last May at a seasonally adjusted annual rate of 5.34 million units from April, the National Association of Realtors (NAR) said.  

Home buyers scrambled to benefit from favourable conditions, as mortgage rates fell, NAR’s chief economist Lawrence Yun said.

Breaking down the four major regions in the US, the Northeast, the Midwest, posted sales increases of 4.7% and 3.4%, respectively, the data indicated.

In addition, the South and the West regions both saw a sales growth of 1.8%.

However, sales fell by 1% on annualised basis last month.

The median house price climbed by 4.8% year-on-year to $277,700 last month from $265,100, marking the 87th month of yearly price increase in a row.

First-time buyers were 32% of sales in May, unchanged from the prior month, and 1% up from the rate observed in the same month last year.

Total housing inventory rose to 1.92 million at the end of last month, compared with 1.87 million in the previous month, the NAR said.

At May’s pace, it would take 4.3 months to sell the current inventory, compared with the ratio of 4.2 months in both of the prior month and a year ago.