Existing Home Sales and Prices Reach Milestone Highs

In nearly a decade, the median price of existing homes reached an all-time high and hit their highest pace last month!!

The National Association of Realtors® (NAR) said completed sales of single-family homes, condominiums, and cooperative apartments rose by 1.8 percent from April to a seasonally adjusted annual rate of 5.53 million units, the highest annual rate since sales set a 5.79 million pace in February 2007. April sales were revised down to 5.43 million from 5.45 million.

According to the May home sales report:

• Despite the increase, sales in May were below what analysts had expected
• Sales rose on a year over year basis by 4.5 percent compared to a year-over-year gain of 6.0 percent in April.
• The median price of all homes sold during May was $239,700, up 4.7 percent from the previous year, marking the 51^st consecutive month of year-over-year gains.
• Single Family homes up 1.9%
• Condo sales have gone up 1.6%
• May saw a 1.4 percent increase over inventory in April
• Foreclosures and short sales together represented only 6 percent of all sales, down from 7 percent in the month prior

Throughout the different regions in the US, existing home sales have increased when compared to a year ago.

However, while the market remains hot and prices reach milestone highs, we are still seeing low rates of homeownership among young adults. According to a survey conducted by NAR, high levels of student debt may be a partial cause of low ownership rates and the continuing low share of first-time buyers among the younger population.

Read the full article at Mortgage Daily News