Tuesday June 23, 2009
WASHINGTON: Sales of existing US homes likely rose for a second straight month in May as plentiful supplies and low mortgage rates have opened the resale market to a wider range of buyers, according to a Reuters poll. Existing homes probably rose to a 4.81 million annual rate in May, which would be the highest level since October, according to a median forecast of 64 economists polled by Reuters.
Sales notched a 4.68 million annual pace in April. This would also be the first back-to-back rise since August and September 2005, according to the National Association of Realtors. "While sales may not have yet reached an absolute bottom, clearly a bottoming process is underway," Wachovia said in a research note.
Aiding the likely upswing is the rise in pending home sales for three straight months. The data for April released earlier this month showed the biggest monthly gain since October 2001 for pending home sales. The National Association of Realtors will release US existing-home sales data on Tuesday at 10 am (1400 GMT).
The following is a selection of comments from economists. Forecast: 4.68 million units "Existing home sales are being pulled by two forces. Distressed sales and falling house prices are pulling the numbers up in a few states. Job losses are pulling the numbers down in most states. Over the last six months, sales have zigzagged about the 4.6 million mark. For May, we are expecting this patter to continue with flat sales. Going forward, we expect sales to slide further because of the recent rise in mortgage rates and further job losses."
(Reuters)
WASHINGTON: Sales of existing US homes likely rose for a second straight month in May as plentiful supplies and low mortgage rates have opened the resale market to a wider range of buyers, according to a Reuters poll. Existing homes probably rose to a 4.81 million annual rate in May, which would be the highest level since October, according to a median forecast of 64 economists polled by Reuters.
Sales notched a 4.68 million annual pace in April. This would also be the first back-to-back rise since August and September 2005, according to the National Association of Realtors. "While sales may not have yet reached an absolute bottom, clearly a bottoming process is underway," Wachovia said in a research note.
Aiding the likely upswing is the rise in pending home sales for three straight months. The data for April released earlier this month showed the biggest monthly gain since October 2001 for pending home sales. The National Association of Realtors will release US existing-home sales data on Tuesday at 10 am (1400 GMT).
The following is a selection of comments from economists. Forecast: 4.68 million units "Existing home sales are being pulled by two forces. Distressed sales and falling house prices are pulling the numbers up in a few states. Job losses are pulling the numbers down in most states. Over the last six months, sales have zigzagged about the 4.6 million mark. For May, we are expecting this patter to continue with flat sales. Going forward, we expect sales to slide further because of the recent rise in mortgage rates and further job losses."
(Reuters)
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