Tight supply of U.S. homes drives monthly sales drop, price hike

June 29th, 2012

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The National Association of Realtors released new findings which explained that existing-home sales in the U.S. slipped in May when compared to April, but were still strong year-over-year.

Total sales for existing homes dropped 1.5 percent in May to a yearly rate of 4.55 million. April’s rate was 4.62 million. However, May’s statistic was still 9.6 percent higher than the same point in 2011, which had a rate of 4.15 million.

In addition to the year-over-year sales gain, home prices improved significantly during that same period. The median existing-home price improved to $182,600 in May, which was a 7.9 percent gain.

Further reason that those buying and selling due to corporate relocation plans could benefit at the moment is the fact that mortgage rates are still near record-low levels, which has boosted affordability. Freddie Mac revealed in its Primary Mortgage Market Survey for the week ending June 21 that 30-year fixed-rate mortgages averaged 3.66 percent, which was a drop from the previous week’s figure of 3.71 percent.