Existing Homes Sales Slip In May

By
Mortgage and Lending with DNJ Gateway Mortgage

 

Existing Home Sales (2010-2011)Home resales slipped 4 percent in May, falling below the 5,000,000-unit mark on a seasonally-adjusted, annualized basis for the first time since February.

April’s resales were revised lower, too.

Analysts were surprised by the figures because it runs counter to the National Association of REALTORS® monthly Pending Home Sales reports.

The association’s Pending Home Sales Index is purported to be a forward-looking indicator for the housing market because 80% of homes under contract close within 60 days and recent Pending Home Sales readings show an increase in “pending” homes.

This month’s Existing Home Sales, however, fell flat.

May’s drop in home resales wasn’t limited to a particular region or price point, either. All 4 geographic regions lag last May’s results. Five of the 6 valuation ranges fell, too.

  • $0-$100,000 : +6.7 percent annual change
  • $100,000-$250,000 : -21.6 percent annual change
  • $250,000-$500,000 : -16.0 percent annual change
  • $500,000-$750,000 : -11.0 percent annual change
  • $750,000-$1,000,000 : -20.7 percent annual change
  • $1,000,000 or more : -11.0 percent annual change

The Existing Home Sales report wasn’t all bad, however.

Although the months of housing stock rose to 9.3 in May, the number of homes for sale nationwide fell 1%. This suggests that there weren’t as many buyers in May as compared to April — a function of weather, jobs and the economy. Since April, the jobs market and the economy have shown steady, slow improvement and Mother Nature has been less destructive.

Home resales should rebound in June and July, therefore.

If you’re a buyer in today’s market, home supplies are higher and mortgage rates are lower. The combination makes for ample bargain-hunting. There’s excellent “deals” to be found in Cary & all across the triangle. Ask your real estate agent for help in finding them.

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Interested in me?  I am a mortgage loan officer at DNJ Mortgage with headquarters in Raleigh, NC.  Not only have myself and my team helped thousands of homeowners finance homes in our local area including Apex, Cary , Wake Forest , Chapel Hill, Durham, and many more areas in North Carolina; but we originate loans in all states from Virginia to Florida.  We have command over all loan programs from FHA, USDA, VA, to NC Housing, down payment assistance, conventional loans, etc...  We also specialize in low closing cost loans and no closing cost loans. 

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Austin Herbert, CRMS
Senior Loan Officer
DNJ Gateway Mortgage
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Comments (2)

Eric Crane -- Your Full Service, Discount Fee Realtor®
DPR Realty LLC - Gilbert, AZ
Greater Metro Phoenix Arizona

Good morning and thanks for the data.  Here in Arizona, the market is brisk, but still languishing at the lower prices.  Glass half full perspective is "Things are busy."  Glass half empty is "Why wouldn't they be, at 50% off the highs".  Either way you look at it, however, a great opportunity for a buyer.  Have a great week!

Jun 22, 2011 05:14 AM
Austin Herbert
DNJ Gateway Mortgage - Raleigh, NC

Thanks for the comment Eric, you're absolutely right

Jun 22, 2011 05:29 AM