The May sales report by the National Association of Realtors showed a housing market unable to meet the demand from would-be buyers.
Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, climbed 1.1% to a seasonally adjusted annual rate of 5.62 million in May from a downwardly revised 5.56 million in April.
In the Midwest, existing-home sales actually fell - the only region to do so - 5.9 percent in May to an annual rate of 1.28 million, which is 0.8 percent below May 2016 level.
The median sales price for an existing single-family home in Florida last month was $239,000, up 7.7 percent from the previous year and marking the 66th consecutive month that the statewide median increased. Existing-home sales in the West rose, as well, 3.4 percent to 1.22 million, with a median price of $368,800.
Sales of previously-owned homes rebounded in May despite leaner supply and higher prices.
While Manatee County saw a significant year-over-year increase in median prices, Sarasota had a slight decrease. Sales of newly built single-family homes dropped in April after three straight monthly rises, though economists expect the Commerce Department on Friday will report new-home sales rose 3.7% in May. Homes are staying on the market for a median of just 27 days, the briefest period since the Realtors began tracking the measure in 2011. Homes are coming off the market at an extremely fast pace and the prevalence of multiple offers in some markets are pushing prices higher.
The rise in inventory was encouraging, but inventory levels continue to be tight for some time and are stimulating price growth.
"With an increase in home prices, potential sellers are more interested in listing", association president Xena Vallone said.
Mortgage rates rose after last year's presidential election but edged down in recent months.
Median price for those units rose 4 percent to $260,000 vs. $249,900 a year earlier, vehicle said.
The rate for a 15-year fixed home loan is now 2.96 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 2.94 percent. That helped send the median days a property spent on the market to a fresh low of 27 days.
The median existing home price for all housing types in May came in at $252,800, topping the high measured last June ($247,600) and up 5.8% from May 2016 ($238,900). "Home prices keep chugging along at a pace that is not sustainable in the long run".