Sales of existing-homes rose 2.4% in May, as compared to April, to According to the National Association of Realtors (NAR).  Sales in May stood at a seasonally adjusted annual rate of 4.77 million units.

This is the second straight month of increased sales, due mainly to a plentiful supply of homes and availability of attractive mortgage rates. According to NAR, this is the first back-to-back rise since August and September 2005. “While sales may not have yet reached an absolute bottom, clearly a bottoming process is underway,” said Wachovia, a financial services firm.

The total existing-homes supply stands at 3.8 million units, a 9.6-month supply at the current pace of sales.  Less than 6 months of supply equates to a seller’s market, whereas more than 6 months of supply indicates a buyer’s market.

We’re still in a buyer’s market, but signs of a bottoming out are being seen by experts.

That’s some good news we can all use!