U.S. Foreclosure Homes for Sale Increased Again in May
Sales of pre-owned homes and foreclose homes for sale in the U.S. increased in May by 2.4 percent, according to an analysis of national real estate data.
Total home resales increased to 4.77 million in adjusted yearly rate, as first-time home buyers took advantage of the federal tax credit program, which is ending this November. Together with investors, they also took advantage of low prices of foreclosure homes for sale, large inventories of foreclosure properties and low mortgage rates.
The median home price declined by 17 percent nationwide, the third biggest drop in the nation’s real estate sales history.
According to a survey of economists, sales of previously owned homes would increase to an adjusted yearly rate of 4.82 million. The adjusted rate is the median of 76 estimates which ranged from the forecast of 4.6 million to the forecast of 5 million. The adjusted yearly rate for April was 4.66 million.
The adjusted yearly rate for May was the highest pace since October last year. According to real estate analysts, the month of May is traditionally among the three months with the fastest pace of home sales, including sales of new homes, pre-owned homes and foreclosure homes for sale.
During May and the other warmer months, families make their move ups or home relocations before their children begin their next school year, so home purchases usually increase during these months.
In May, the median price for a pre-owned home dropped to $173,000 from the $207,900 median in May last year. Home prices fell as foreclosures continued to increase in many states and many banks released their foreclosure homes for sale.
The percentage of foreclosure homes for sale and short sales in May was 33 percent, a drop of around 45 percent from the sales percentage during the first months of this year.
Additionally, for the third consecutive month, foreclosure filings nationwide exceeded 300,000 in May, based on a compilation of national foreclosure data. The study predicted that foreclosure filings may reach 1.8 million for the period from January to June.
The record foreclosures pushed down home prices, enabling more families to buy their first-ever homes. First-time home buyers comprised around 29 percent of all home sales in May.
Nevertheless, even if affordability has been improving due to the foreclosures, many families have not been able to take advantage of the low prices of foreclosure homes for sale because of high levels of personal debt and unemployment.
