Sales of existing homes finally perked up in a convincing way in May, as sales jumped 5.1 percent to a 5.35 million unit pace. Existing home sales are now at their highest level since November 2009, when sales spiked just before tax incentives for first-time home-buyers expired.

First-time home-buyers are also playing a role in the latest uptick in sales. The National Association of Realtors (NAR) noted that first-time buyers accounted for 32 percent of May’s purchases, up from 30 percent the prior month and 27 percent one year ago. The return of first-time buyers would mark a major shift for the housing market and coincides with earlier data that showed pending home sales (which reflect purchase contracts) running well ahead of existing home sales (which reflect closings). Moreover, recent data from the Brookings Institution show suburban population growth once again exceeding urban population growth, which would mark a favorable development for single-family home sales.

Home sales strengthened in all four regions. The Northeast, which accounts for the smallest share of overall sales, saw the largest percentage gain, with sales jumping 11.3 percent in May to a 690,000-unit pace. Sales in the South, which includes Texas and Florida, rose 4.3 percent during the month to a 2.18 million unit pace.

Sales in the West also climbed 4.3 percent during the month, hitting a 1.21 million pace. And sales in the Midwest rose 4.1 percent, rising to a 1.27 million-unit pace. Sales of single-family homes rose 5.6 percent to a 4.7 million-unit pace, while sales of condominiums and co-ops rose 1.6 percent to a 620,000 unit pace.

Source: NAR, FHMLC, FHFA, S&P Case-Shiller and Wells Fargo Securities, LLC