Existing-home sales had another strong showing in May with gains reported in the West and South. According to a June report by the National Association of Realtors® (NAR), existing home-sales are on an annual pace to reach 5.66 million units for the year, approximately 19 percent above 2009 levels.
Lawrence Yun, NAR chief economist, believes the trend will continue for at least another month. "We are witnessing the ongoing effects of the home buyer tax credit, which we’ll also see in June real estate closings," he said. Congress recently extended the tax credit closing deadline to September 30, helping would-be buyers who were under contract before April 30 to qualify for the $8,000 credit.
First time buyers accounted for 46 percent in May, while repeat buyers accounted for 40 percent of transactions; the remaining sales were attributed to investors. All-cash sales held steady at 25 percent, compared to 26 percent the month before.
NAR President Vicki Cox Golder said home prices appear to be stabilizing. "With distressed sales at roughly the same level as a year ago, the gain in home prices is a hopeful sign that the market is in a good position to stand on its own without further government stimulus," she said.