Sudbury MA Real Estate

Home resales rise, prices fall

WASHINGTON - Sales of previously owned homes in the United States rose in May from the lowest level in at least nine years as a slide in prices lured some buyers into the market.

Resales increased 2 percent to a 4.99 million annual rate, higher than forecast, from a 4.89 million pace in April, the National Association of Realtors said yesterday. Separately, the Commerce Department said the economy grew at a 1 percent annual pace in the first quarter, capping the weakest six-month expansion in five years.

The supply of homes for sale remains about twice the level representing a stable market, according to the NAR, and figures have yet to show any sign of sustained sales gains. Federal Reserve officials said Wednesday the housing contraction will likely damp growth into 2009.

“It’s going to be a long, painful end” to the housing industry’s decline, said Mark Zandi, chief economist at Moody’s Economy.com in West Chester, Penn. “Prices have come down enough that affordability has been restored in some markets and we’re starting to see some buyers come back in.”

Click here to read the full article