Sales of U.S. Existing Homes up 4.9 Percent in May - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Sales of U.S. Existing Homes up 4.9 Percent in May

Posted:
WASHINGTON (AP)- Sales of previously owned U.S. homes posted the best monthly gain in nearly three years in May, providing hope that housing is beginning to regain momentum lost over the past year.
    
The National Association of Realtors reported Monday that sales of existing homes increased 4.9 percent last month to a seasonally adjusted annual rate of 4.89 million homes. The monthly gain was the fastest since August 2011, but even with the increase, sales are still 5 percent below the pace in May 2013.
    
"Sales appear to be moving up again, although the increase to date - over two months - reverses just a fraction of earlier weakening," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics, said in a research note.
    
Sales had been dampened by last year's rise in mortgage rates from historic lows and various other factors including tight supplies and tougher lending standards.
    
The median price of a home sold in May was $213,400, up 5.1 percent from a year ago.
    
After hitting a recent peak of 5.33 million sales at an annual rate last summer, sales started sliding. Potential buyers have been grappling with a limited supply of houses, more expensive homes and lending standards which have been tightened in response to the housing boom of the past decade which resulted in millions of houses going into foreclosure.
    
Five years into the recovery from a deep recession that was triggered in part by the collapse in housing, housing sales have yet to return to their historic averages. Demand remains strong for the most expensive homes but has faltered for starter homes and those priced for middle class buyers.
    
The pace of home sales is below the 5.1 million homes sold in 2013 and off the pace of 5.5 million annual sales that would be consistent with a healthy housing market.
    
Lawrence Yun, chief economist for the Realtors, said because of the weaker start to sales this year, he expects that sales for the entire year will be down 3.1 percent this year to 4.9 million, compared with 5.1 million sales of existing homes in 2013, which had been a 9.2 percent rise from 2012. Yun said he was predicting a stronger second half for sales this year but he said that would not be enough to compensate for the weakness at the start of this year, a slowdown that reflected in part a harsh winter.
    
Sales of existing homes began to slow in the second half of 2013 as mortgage rates crept up from historic lows, but home prices continued to rise due to a lack of available homes for sale.
    
Average rates for 30-year fixed-rate mortgages declined to 4.17 percent last week, down from 4.20 percent the previous week. Mortgage rates are about a quarter of a percentage point higher than they were at the same time last year.
    
Yun forecast that mortgage rates will be rising at the end of this year as the Federal Reserve moves closer to starting to boost interest rates. He forecast rates would average 4.9 percent in the last three months of this year and 5 percent in the first quarter of 2015.
    
The total inventory of homes for sale at the end of May climbed 2.2 percent to 2.28 million homes, which represents a 5.6-month supply at the May sales pace. Inventory is 6 percent higher than a year ago, which analysts said should help to slow price gains and boost sales by giving would-be buyers more homes to choose from.

  • Delmarvawide NewsDelmarvawide NewsMore>>

  • Riverdale Man Arrested for Dover Robbery

    Riverdale Man Arrested for Dover Robbery

    08/22/2017 21:41:00 -04:002017-08-23 01:41:00 GMT
    Tuesday, August 22 2017 9:42 PM EDT2017-08-23 01:42:44 GMT
    Micah CosbyMicah Cosby
    DOVER, Del.- A Riverdale man was arrested for the robbery of a TD Bank in Dover on Monday, according to Dover Police. Officials said 34-year-old Micah Cosby gave the teller of the bank on North DuPont Highway a note that demanded money.More
    A man from Riverdale, Maryland was arrested for the robbery of a TD Bank in Dover on Monday, according to Dover Police.More
  • Ocean City to Host Fall Movie Night

    Ocean City to Host Fall Movie Night

    Tuesday, August 22 2017 6:02 PM EDT2017-08-22 22:02:21 GMT
    Tuesday, August 22 2017 6:02 PM EDT2017-08-22 22:02:21 GMT
    The Town of Ocean City is gearing up to host its annual Fall Movie Night in the Park.More
    The Town of Ocean City is gearing up to host its annual Fall Movie Night in the Park.More
  • Pocomoke Man Leads Deputy on Brief Chase

    Pocomoke Man Leads Deputy on Brief Chase

    Tuesday, August 22 2017 5:50 PM EDT2017-08-22 21:50:55 GMT
    Tuesday, August 22 2017 5:50 PM EDT2017-08-22 21:50:55 GMT
    A Dover woman was arrested after providing officers with a fake name.A Dover woman was arrested after providing officers with a fake name.
    SNOW HILL, Md.- A Pocomoke man has been arrested after a brief pursuit on Friday.According to the Worcester County Sheriff's Office, a deputy attempted to stop 36-year-old Tremayne Rogers for speeding on Route 113 near Snow Hill.Rogers failed to stop, anMore
    SNOW HILL, Md.- A Pocomoke man has been arrested after a brief pursuit on Friday.According to the Worcester County Sheriff's Office, a deputy attempted to stop 36-year-old Tremayne Rogers for speeding on Route 113 near Snow Hill.Rogers failed to stop, anMore
  • Most Popular StoriesMost Popular StoriesMore>>

  • Neighbors React to Easton Recovery Home

    Neighbors React to Easton Recovery Home

    Tuesday, August 22 2017 5:27 PM EDT2017-08-22 21:27:16 GMT
    Tuesday, August 22 2017 5:27 PM EDT2017-08-22 21:27:16 GMT
    It's a small and quiet blue house - but it's caused quite the uproar.More
    It's a small and quiet blue house - but it's caused quite the uproar.More
  • Pocomoke Man Leads Deputy on Brief Chase

    Pocomoke Man Leads Deputy on Brief Chase

    Tuesday, August 22 2017 5:50 PM EDT2017-08-22 21:50:55 GMT
    Tuesday, August 22 2017 5:50 PM EDT2017-08-22 21:50:55 GMT
    A Dover woman was arrested after providing officers with a fake name.A Dover woman was arrested after providing officers with a fake name.
    SNOW HILL, Md.- A Pocomoke man has been arrested after a brief pursuit on Friday.According to the Worcester County Sheriff's Office, a deputy attempted to stop 36-year-old Tremayne Rogers for speeding on Route 113 near Snow Hill.Rogers failed to stop, anMore
    SNOW HILL, Md.- A Pocomoke man has been arrested after a brief pursuit on Friday.According to the Worcester County Sheriff's Office, a deputy attempted to stop 36-year-old Tremayne Rogers for speeding on Route 113 near Snow Hill.Rogers failed to stop, anMore
  • Scheduled Jet to Land at Salisbury Airport Tuesday

    Scheduled Jet to Land at Salisbury Airport Tuesday

    08/22/2017 15:59:00 -04:002017-08-22 19:59:00 GMT
    Tuesday, August 22 2017 3:59 PM EDT2017-08-22 19:59:10 GMT
    The first scheduled jet will land in Salisbury, Maryland on Tuesday night.More
    The first scheduled jet will land in Salisbury, Maryland on Tuesday night.More
  • Most Popular VideosMost Popular VideosMore>>

  • Neighbors React to Easton Recovery Home

    Neighbors React to Easton Recovery Home

    The Humble House has some neighbors like Michael Engels more than just worried.

    "The last thing I want to do is to find out there's a halfway house within walking distance from where my children will be playing and living," Engels said.

    Upset with what's just down the street, Engels says he's considering moving.

    More

    The Humble House has some neighbors like Michael Engels more than just worried.

    "The last thing I want to do is to find out there's a halfway house within walking distance from where my children will be playing and living," Engels said.

    Upset with what's just down the street, Engels says he's considering moving.

    More
  • Law Enforcement Warns Against the Use of Dirt Bike's on Salisbury's Streets

    Law Enforcement Warns Against the Use of Dirt Bike's on Salisbury's Streets

    Law enforcement warns against the dangers of dirt biking on public streets.

    With the warmer weather, police said they have seen an uptick in dirt biking throughout Salisbury.

    Lieutenant Jason King from the Salisbury Police Department said, "A lot of times they aren't paying attention to traffic on the roadway and people who may be walking in neighborhoods and its just not safe to do those kind of things."

    More

    Law enforcement warns against the dangers of dirt biking on public streets.

    With the warmer weather, police said they have seen an uptick in dirt biking throughout Salisbury.

    Lieutenant Jason King from the Salisbury Police Department said, "A lot of times they aren't paying attention to traffic on the roadway and people who may be walking in neighborhoods and its just not safe to do those kind of things."

    More
  • Scheduled Jet to Land at Salisbury Airport Tuesday, Part 3

    Scheduled Jet to Land at Salisbury Airport Tuesday, Part 3

    It took more than two decades to get to the Salisbury Wicomico Airport to where it is. WBOC's Chris Weimer spoke with former airport manager Bob Bryant about the history of the airport's expansion.

    More

    It took more than two decades to get to the Salisbury Wicomico Airport to where it is. WBOC's Chris Weimer spoke with former airport manager Bob Bryant about the history of the airport's expansion.

    More
Powered by Frankly

All content © Copyright 2000 - 2017 WBOC. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices