The National Association of Realtors (NAR) reports sales of existing homes rose 5.1 percent in May over April to their highest level since 2009. Existing home sales in May were 9.2 percent over May 2014, according to bizjournals, and year-over-year sales have risen for the past eight months.
In addition, the median price of sold homes rose 7.9 percent over a year ago. In a likely indication of investors reducing their presence in the market, as MHProNews understands, cash sales of homes fell from 32 percent in May 2014 to 24 percent in May 2015.
Another positive indicator: First time home buyers accounted for 32 percent of closed sale in May. NAR Chief Economist Lawrence Yun says, “The return of first-time buyers in May is an encouraging sign and is the result of multiple factors, including strong job gains among young adults, less expensive mortgage insurance and lenders offering low downpayment programs.” While he says more first-time homebuyers are expected to enter the market in coming months, it depends on the rise in interest rates and the price of homes. ##
(Photo credit: mattheafey)
Article submitted by Matthew J. Silver to Daily Business News-MHProNews.