Existing Sales Fall In Spite of More First-timers

Sales of single-family existing homes fell 2.5% in March after a bump up in February, but The National Association of Realtors is noticing more first-time homebuyers entering the market. The group reported that sales of existing single-family homes fell from a seasonally adjusted annual rate of 4.22 million in February to 4.1 million in March. "The share of lower priced home sales has trended up, indicating a return of many first-time homebuyers, which we also see in a parallel member survey," said NAR chief economist Lawrence Yun. "Sales in the upper price ranges remained stalled because of higher interest rates on jumbo loans," he added. The median price of a home sold in March was $174,900, down 11.5% from a year ago. IHS Global Insight economist Patrick Newport expects sales will pick up in the third quarter after house prices drop further, lending increases and first-time homeowners "jump into the market in great numbers to take advantage of the tax credit (worth up to $8,000) that expires Dec. 31.