Existing-home sales increased 2.9% to a 4.68 million annual rate from 4.55 million in March, the National Association of Realtors said Wednesday. About 45% were foreclosures and short sales.
Distressed property sales are pressuring prices downward. The median price for an existing home last month dropped 15.4% to $170,200 from $201,300 in April 2008.
"With supply overhang still huge and mortgage financing difficult to obtain, home prices are likely to decline considerably further in the quarters ahead," said Joshua Shapiro, chief U.S. economist at MFR Inc.
Lower prices, combined with historically low borrowing costs, have increased affordability. The average 30-year mortgage rate was 4.81% in April, down from 5.00% in March, Freddie Mac (FRE) data show. Realtors also hope demand is stirred by the $8,000 tax credit for first-time home buyers included in the Obama administration's economic stimulus package.
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