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Still, sales remain far below healthy levels. Analysts say it could be years before the housing market returns to full health. One reason prices are rising is the supply of homes for sale remains extremely low. The inventory of previously occupied homes for sale is back down to levels last seen in 2006. And there were 145,000 new homes for sale in May, just 1,000 higher than in April, which was the lowest supply on records dating back to 1963. The Realtors group cautioned that sales could slow if more people don't list their homes. The limited inventory should spur more home building, the Realtors group said. If housing starts don't increase, the limited supply could drive up prices. In May, contract signings increased in all regions. The largest rise was in the West, where the index jumped 14.5 percent in May. Signings rose 6.3 percent in the Midwest, 4.8 percent in the Northeast, and 1.1 percent in the South. Despite the modest gains in housing, the broader economy has weakened in recent months. Employers have added an average of only 73,000 jobs a month in April and May. That's much lower than the average of 226,000 added in the first three months of this year.
[Associated
Press;
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