Monday, June 23, 2014

Sales of Existing Homes Jump in May

Kent Hoover of Washington Bureau Chief stated that sales of existing homes jumped nearly five percent in May which is the biggest monthly increase in nearly three years. Even though the May sales volume was lower by about five percent last year according to the National Association of Realtors, this report was still great news for the housing industry.

Home buyers are still benefiting from the slower price growth due to the increasing number of inventories since the beginning of this year. Sales are also helped by the improving job market and slight decline in mortgage rates. 

Another issue facing the housing market is that 27% of buyers in May were first time home buyers.  Steve Brown, NAR President, mentioned that this percentage will improve if mortgage rates stay stable and number of inventories improves.


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