Home Sales Dip, but Prices above Last Year’s

Sales of existing homes dipped 1.5 percent in May from April but are up substantially from a year ago, along with property prices, said the National Association of REALTORS®.

Last month, resales slipped to a seasonally adjusted annual rate of 4.55 million from 4.62 million in April but were up 9.6 percent from May 2011, according to the report.

The median price soared 7.9 percent to $182,600 from a year ago, marking the third year-over-year gain in a row — the first time that’s happened since 2006. Analysts from Credit Suisse called the firming prices, now at the highest level since June 2010, “the silver lining” of the report.

Sales of single-family homes were 1 percent lower than April but 10.4 percent higher than last May. The price for such properties spiked 7.7 percent from 2011 to $182,900.

The report, which also factors in town homes, condominiums and co-ops, blamed the dip from April on tight supply of properties, rather than softening demand. The inventory of listed homes for sale is 20.4 percent smaller than a year ago, according to the Realtors association.

Mortgage rates are again at record lows; building permits are at more than a three-year high and single-family housing starts are increasing.

Heavily discounted foreclosures and short sales make up a substantial but shrinking portion of home buys — 25 percent in May from 31 percent a year earlier. First-time buyers, however, make up a third of the pool, a smaller portion than before.

“The recovery is occurring despite excessively tight credit conditions and higher down payment requirements, which are negating the impact of record high affordability conditions,” Lawrence Yun, chief economist of the trade group, said in a statement.

The same trends, he said, are represented in the western part of the country, where sales are down 3.4 percent from April but up 3.6 percent from 2011. Realtors there have been on the hunt for more distressed properties because there are more buyers than homes available, Yun said.

Expensive properties have been driving sales in the region, where the median price is $233,900, up 3.6 percent from a year earlier.

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About thenoelteam

As a Broker with RE/MAX Alliance, I work energetically for my clients whether they are a buyer or seller. I help you achieve your goal of owning a home or getting the best price for your home in the shortest time possible. After graduating from UCLA with a degree in communications and finance, I was licensed in 1977 and since then I have sold over 3600 properties amounting to over $1 billion in sales. I currently rank in the top 10 in home sales for Colorado. I offer the same quality of service and superior communication to all clients, ranging from starter homes to multi-million dollar estates, commercial and income properties, relocations and foreclosures My goal is to provide you with the best representation possible whether you are buying or selling. Over the years, one of the things that I've discovered is that there is a difference in the way individual Realtors do business. For me, I have always felt that honesty and personal integrity are the foundations upon which a successful business and career are built and sustained. I have an extensive background and knowledge base in real estate, including financing, which has enabled me to provide outstanding, quality advice and service not found with many agents today. My commitment to communication creates a positive relationship between my client and myself that results in a successful property sale or purchase. My passion for real estate, commitment to my clients and personal integrity has helped me to achieve success placing me in the top 1% of all brokers in nationwide. In my career, I have earned a number of awards and received considerable recognition for my success but the most significant recognition comes from the fact that over 75% of my business comes from past clients. My success is a true measure of my client satisfaction.
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