CNBC - Existing home sales rise 2.4 percent nationally in May

Existing home sales rose 2.4 percent nationally in May as first-time
homebuyers looked to take advantage of the $8,000 tax credit before
the offer expires in November. CNBC's Diana Olick said many people are
also in a hurry to buy before mortgage rates climb higher. In the
northeast, home sales rose higher than the national average,
increasing 3.9 percent. However, despite an overall rise in existing
home sales, the median home price fell 16.8 percent in May to $173,000
and brokers have expressed concerns about receiving unrealistically
low appraisals from appraisers that are not well versed in the area,
according to Lawrence Yun, chief economist for the National
Association of Realtors. Patrick Newport, an economist at IHS Global
Insight, said distressed sales are to blame for the low prices and
increasing sales. "Distressed sales are what's driving down home
prices, but they are also what's driving up existing home sales," said
Newport. For more information please click on the link provided:
http://www.cnbc.com/id/15840232?video=1161345125&play=1

Category:

News & Politics

Tags:

• Diana Olick
• CNBC
• first time homebuyers
• Patrick Newport
• real estate
• New York
• IHS Global Insight