Home sales up despite predictions
| 06/09/2008 |
According to the National Association of Realtors' seasonally adjusted index, existing home sales increased from March to April by more than 6 percent. All areas of the country reported growth except for one with the Midwest leading the way increasing 13% from a month before. The Northeast declined by almost 2%. Analysts say that areas like Las Vegas are seeing more sales as supply has skyrocketed and prices have dropped. "Bargain hunters have entered the market en masse, especially in areas that have experienced double-digit price declines, but it's unclear if they are investors or owner-occupants," said NAR chief economist Lawrence Yun. "Sales gains will be greatest in areas that underwent sharp price declines." Yun also noted that sales need to rise before talk of a turnaround can occur and called today's announcement a step in the right direction. At this time last year the index was 13% higher than it is now at 101%. It's peak came in April 2005 at 117%. Most analysts had predicted that the survey would show a 1% decrease in the amount of existing homes sold. The Mortgage Bankers Association recently released a study showing that more Americans are in danger of falling into foreclosure than they have been for the past 30 years. NAR expects that a total of 5.4 million homes to be sold in 2008 with home sales and prices to rise in 2009. |
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