Many reports have been issued over the past month which indicate not only is the housing market recovering, but it is picking up momentum along the way.
Just yesterday, the Commerce Department reported that sales of new homes rose in May to the highest level in five years. New home sales rose 2.1% last month compared to April. This pace has increased 29% from a year ago.
Last month, the Commerce Department reported that new home sales rose 2.3% from March to April. This was the second highest level since the summer of 2008.
These month over month over month increases continue to raise the annual number of new home starts, which was at 476,000 in May. This strong sales pace has raised the median price of a home to $263,900, up 3.3% from a year ago.
Last week, the National Association of Realtors reported that sales of previously occupied homes surpassed 5 million in May. This was the first time this number surpassed 5 million since November of 2009, a month when the pending expiration of a home-buying tax credit inflated sales.
Also reported last week, the National Association of Home Builders/Wells Fargo builder sentiment index reached 52 this month from 44 in May. A reading above 50 indicates more builders view sales conditions as good, rather than poor. The index has not been that high since April 2006, just before the housing market collapsed.
In addition, even Federal Reserve Chairman, Ben Bernanke, has become bullish on the housing recovery. Last week, he cited the housing gains as a major reason the Fed's economic outlook has brightened.
Whether you look at sales of new homes or existing homes, median home prices, number of housing starts, builder confidence, or the Federal Reserve, all indicate the housing recovery is rolling along and picking up steam along the way.