Sales of Existing U.S. Homes Fell in May to 4.55 Million – Bloomberg 06-21-12

Salient to Investors:

Housing industry is restrained the weakest employment gain in a year last month and limited access to credit.

The median price of an existing home climbed to $182,600 in May, the highest since June 2010.

Cash transactions accounted for about 28 percent, distressed sales 25 percent , investors for 17 percent, first-time buyers for 34 percent of the total last month. Typically, first-time buyers make up 40 percent to 45 percent of purchases.

Foreclosures grew in May for the first time since January 2010, after the largest U.S. loan servicers settled with states over faulty documentation. Homebuyer affordability reached a record in Q1.

Predictions:

Michelle Meyer at Bank of America sees a gradual bleeding into the market of distressed properties, and expects a gradual recovery.

Yelena Shulyatyeva at BNP Paribas said demand for resales should be supported mainly by the investor activity, supported by historically high affordability, with traditional buying to own and live limited by tight lending standards.

Read the full article at http://www.bloomberg.com/news/2012-06-21/sales-of-existing-u-s-homes-fell-in-may-to-4-55-million-rate.html