Resales Creep Up

Single-family existing-home sales rose 1.6% in May as buyers took advantage of declining prices in distressed markets and snatched up foreclosed properties, according to the National Association of Realtors. The Realtors reported that sales of previously owned homes rose from a seasonally adjusted annual rate 4.34 million in April to 4.41 million in May. NAR senior economist Paul Bishop said one-third of resales in May involved short sales or sales of bank-owned real estate. He noted that sales have picked up in troubled markets like Battle Creek, Mich.; Sarasota, Fla.; Las Vegas; and Orange County, Riverside, and Sacramento, Calif. The median home price in the West has declined 16% since May 2007. However, sales have softened in stable markets -- such as Portland, Ore.; Seattle; Raleigh, N.C.; and Salt Lake City -- that continue to enjoy solid job growth. Meanwhile, the median price of a single-family home was $296,700 in May, down 6.8% from that of a year ago. The inventory of single-family homes fell slightly in May to a 10.4 month-supply. The NAR can be found online at http://www.realtor.org.