Buy, buy, buy. Up, up up.
The National Association of Realtors reports that sales of existing home rose by 5.1 percent in May to a seasonally adjusted annual rate of 5.35 million, marking the third consecutive month of the sales rate’s exceeding five million homes on an annual basis, moving home-buying on a pace for the the best year since 2007.
Moreover, median home prices have risen 7.9 percent over the last 12 months to $228,700, about $1,700 less than the July 2006 peak.
Why? Analysts cite a stronger job market, decent rates, and the anticipation of prices going even higher.
First-time buyers accounted for 32 percent of April’s sales, up from 27 percent in 2014. Nevertheless, it is still far behind the historical average of 40 percent.
As for the rest of the year, experts will watch just how much higher prices will climb – which might price many out of the market – and the much-anticipated increase in interest rates.