No Improvement In May Home Sales

Yesterday existing home sales reported a rise of 2.4% in May of previously owned homes in the United States. This rose at a slower-than-expected pace in the month and much of it is being attributed to a sluggish recovery from the severe economic recession. Local the Alameda market saw a decline as home sales dipped below 30-units, making it five of the last six months where sales have not exceeded 29 units.

Alameda recorded, for May, a Year-Over-Year sales decline of 30-percent and a month-over-month drop of 20-percent. The swings are big for Alameda, because the numbers are low. The take away is sales just have not started to take off and it appears people are sitting to see if they will have jobs or the market will fall farther.

The news for our region shows that prices in the West Down over 30%

The National Association of Realtors said sales rose 2.4% to an annual rate of 4.77 million units from a downwardly revised 4.66 million pace in April. That compared to market forecasts for a 4.81 million-unit pace. However, sales increased for a second straight month in May. The Realtors report showed sales remained down 3.6% compared to May last year.

Data on new and existing home sales have backed suggestions that the three-year housing slump is nearing a bottom. With a surge in mortgage rates and unemployment highs have tempered any optimism.

The Realtors report showed sales of single-family homes rose 1.9% last month to an annual rate of 4.25 million, while multifamily units — the hardest-hit sector — surged 6.1% to a 520,000-unit annual pace. The supply of unsold homes fell 3.5% to 3.80 million. At the current sales pace, it would take 9.6 months to clear that supply, down from 10.1 months in April.

On the new home front, the government reported sales fell slightly last month, in another sign that the housing market’s recovery is likely to be gradual and prolonged. The Commerce Department said Wednesday that sales dropped 0.6 percent in May to a seasonally adjusted annual rate of 342,000, from a downwardly revised April rate of 344,000. Sales were down nearly 33 percent from May last year.

Overall the news is this housing downturn still needs a lot more to happen for it to turn.

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