Small rise seen in US home sales

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Sales of previously owned homes in the US rose for the second month in a row in May but at a slower-than-expected pace, an estate agent body has said.

The National Association of Realtors said sales rose 2.4% to an annual rate of 4.77 million last month, up from 4.66 million in April.

Analysts had expected the annual rate to reach 4.81 million.

House prices were down 16.8% on a year ago. The average sale price now stands at $173,000 (£105,000).

It had been $207,900 in May 2008.

"The housing number suggests that things are bottoming, but that's a far cry from improving," said Subodh Kumar, chief investment strategist at Subodh Kumar & Associates in Toronto.

"I think the markets are focused on how fast the recovery is going to be, and I think it won't be as fast as people are thinking."