From George C.

Existing homes sales rose by 2.4 percent in May, posting the first back-to-back gain in sales since September 2005. That’s the word this morning from the National Association of Realtors. The group says favorable affordability conditions have buyers bidding on reduced-price homes. The $8,000 tax credit being offered to first-time buyers is helping to spur activity. By the way, legislation is pending in Washington to raise the tax credit to $15,000. Existing sales in the West lagged the overall nation. Activity here actually declined 0.9 percent in May but the pace was 11.8 percent higher than a year ago. Prices in the West are down 30.6 percent in the past 12 months.

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Another report out this morning from the National Foundation for Credit Counseling paints an amazingly negative picture of the housing market.

Almost one-third of people surveyed — 72 million people — do not think they will ever be able to afford to buy a home.

And, 42 percent of those who once purchased a home, but no longer own it, do not think they will ever be able to afford to buy another one.

“It appears that whether a person was directly affected or not, Americans’ attitudes toward homeownership have shifted,” said Gail Cunningham of NFCC. The program also found that 74 percent of those who have never purchased a home felt they could benefit from first-time homebuyer education.

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Jim the Realtor
Jim is a long-time local realtor who comments daily here on his blog, bubbleinfo.com which began in September, 2005. Stick around!

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