Existing Home Sales Blow Past Expectations

April existing home sales rose 7.6%.

This amounted to an adjusted rate of 5.77 million units, which was higher than the expected existing home sales of just  5.65 million units.

WASHINGTON (May 24, 2010) – Existing-home sales rose again in April with buyers motivated by the tax credit, improving consumer confidence and favourable affordability conditions, according to the National Association of Realtors®.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 per cent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 per cent higher than the 4.70 million-unit pace in April 2009. Monthly sales rose 7.0 per cent in March.

Lawrence Yun, NAR chief economist, said the gain was widely anticipated. “The upswing in April existing-home sales was expected because of the tax credit inducement, and no doubt there will be some temporary fallback in the months immediately after it expires, but other factors also are supporting the market,” he said. “For people who were on the sidelines, there’s been a return of buyer confidence with stabilizing home prices, an improving economy and mortgage interest rates that remain historically low.”

The national median existing-home price3 for all housing types was $173,100 in April, up 4.0 per cent from April 2009. Distressed homes accounted for 33 per cent of sales last month, compared with 35 per cent in March.

See the official release here >


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