Noting the median home price jumped eight percent from April to May to $208,000, and sales of homes rose four percent for the same period, chief economist Lawrence Yun of the National Association of Realtors (NAR) says, “The home price growth is too fast, and only additional supply from new home building can moderate future price growth.” He says there needs to be a 50 percent increase in home building to stave off another potential housing bubble. Distressed sales have dropped from 25 percent of overall sales one year ago to 18 percent, which accounts for some of the rise in rices. Sales are up 13 percent from one year ago to an average annual rate of 5.18 million homes for the month. As CNNMoney informs MHProNews, the low mortgage rates and improved housing market are attracting buyers faster than sellers are putting homes on the market. Buyer traffic has increased 29 percent from a year ago, but the inventory of homes for sale has fallen ten percent.
