Existing Home Sales Jump 7.6% to 5.77 Million Rate

WASHINGTON — Existing home sales increased at a 7.6% annual rate in April to 5.77 million sales, far exceeding economists’ estimates as buyers rushed to capitalize on the home-buyers’ tax credit, the National Association of Realtors reported yesterday.

Sales in March were revised to 5.36 million from 5.35 million reported last month.

Economists polled by Thomson Reuters expected 5.630 million existing home sales in April, according to the median estimate.

The tax credit “clearly has done its job” and “had an impact for first-time buyers,” said Lawrence Yun, the NAR’s chief economist.

May and June sales “could also remain elevated,” he said.

To qualify for the home-buyer tax credit, buyers needed to have signed a contract by the end of April and need to close on the sale by the end of June.

Inventories of homes for sale increased to 4.04 million and to a rate of 8.4 months in April.

Yun said the inventories increase was “surprising” and said he sees “no meaningful gain in home values” this year as a result of the higher home inventories. He also said there is not likely to be a decline in prices.

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