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Existing-home sales increased 1.1 percent nationwide in May to a seasonally adjusted annual rate of 5.62 million. NAFCU Research Assistant Yun Cohen noted that "despite a slight increase in new listings during the month, inventory remains persistently low and continues to constrain sales."

"Nevertheless," she added in a NAFCU Macro Data Flash report, "the outlook remains positive overall in light of a strong labor market and improving rates of household formation."

Data published by the National Association of Realtors Wednesday shows that May sales were 2.7 percent higher than a year ago.

Sales rose in three of the four regions during May. The Northeast increased 6.8 percent, followed by the West (+3.4 percent) and the South (+2.2 percent); sales in the Midwest region decreased 5.9 percent.

Based on current sales, there were 4.2 months of supply at the end of May, up from 4.1 months in April. Analysts consider six months of supply to be roughly balanced between supply and demand. Inventory increased 2.1 percent in May but was down 8.4 percent from a year ago. Inventory has declined year-over-year for 24 consecutive months.

"As a result of the tight market, a typical home was sold after being on the market for merely 27 days, the shortest timeframe since the [National Association of Realtors] began tracking in 2011," Cohen added.

The median existing-home price increased from $245,000 in April to $252,800 (not seasonally adjusted) in May – surpassing the highest record set last June. This is 5.8 percent higher than the median price from a year ago. May marks the 63rd consecutive month of year-over-year price increases.