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Existing home sales firmer
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June 25, 1998: 10:52 a.m. ET
Non-traditional buyers, low mortgage rates pushing resale activity
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NEW YORK (CNNfn) - Sales of existing single-family homes rose slightly in May after declining in April, marking a pattern for the market in the months ahead, the National Association of Realtors (NAR) said Thursday.
The seasonally adjusted annual rate of existing-home sales rose 1.0 percent in May to 4.82 million units from 4.77 million units in April.
The May figure was 15.0 percent above May 1997's rate of 4.19 million units.
"After setting a record in March, we have been anticipating a slowdown with sales remaining at exceptionally strong levels," said NAR President R. Layne Morrill. "The market should fluctuate slightly with a gradual slowdown. However, the year should end with a new annual record for existing-home sales."
The association currently predicts 4.53 million sales of existing homes in 1998, 7.5 percent over last year.
The upswing is due in part to an increase in the number of "nontraditional" households - including immigrants, singles and older people trading down -- entering the real estate market, Morrill said.
The median price for an existing residence was $130,500 in May, up 6.0 percent from last year, while the average fixed interest rate for a conventional 30-year mortgage remained 7.14 percent.
"Resale activity is running 15 percent higher than last May, with yearly increases in the South and West in the range of 17 to 18 percent," said Dr. Fred Flick, NAR vice president of economic research. "The annual growth in the Midwest is significant given its strong performance during the decade and the Northeast has recovered very nicely." 
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