Existing–Home Sales Grow 1.8% in May

Lawrence Yun, National Association of Realtors chief economist, stated “ This spring’s sustained period of ultra-low mortgage rates has certainly been a worthy incentive to buy a home, but primary driver in the increases in sales is more homers realizing the equity they’ve accumulated in recent years and finally deciding to trade-up or downsize, “ he elaborated “With first-time buyers still struggling to enter the market, repeat buyers using the proceeds from the sale of their previous home as their down payment are making up the bulk of home purchases right now.”

According to the U.S. Census Bureau, privately-owned housing units authorized by building permits in May were at a seasonally adjusted annual rate of 1,138,000, a 0.7% increase from April’s revised rate of 1,130,000 units. We are still well below the May 2015 estimate of 1,266,000.

Privately-owned housing starts in May 2016 were 1,164,000, 9.5% above the May 2015 rate of 1,063,000.  Single-family housing starts in May 2016 were at a rate of 764,000, a 0.3% above the revised April 2016 figure of 762,000.

Information found on the National Association of Realtors web page, existing home sales, which are completed transactions that include single-family homes, condominiums, co-ops and townhouses for May 2016, grew 5,530,000 units compared to April sales of 5,430,000 units, a 1.8% growth. Last year’s May sales were an adjusted seasonally rate 5,290,000.

Inventory of existing home sales in May 2016, 2,150,000 are -5.7% lower than May 2015 inventory.

According to the Zillow Mortgage Rate Ticker, the 30-year fixed mortgage rate on Zillow® Mortgages is currently 3.41 percent, up two basis points from this time last week. The 30-year fixed mortgage hovered around 3.38 percent for most of the week before rising to the current rate.

The median sale price for existing homes May 2016 last value is $239,700 compared to April 2016 $230,900. (YCharts home page)  Value of existing homes one year ago $228,900, a 4.72% increase.