The National Association of Realtors (NAR) reports that sales of existing homes dropped 3.3 percent in April following a sharp gain of 6.1 percent in March, according to icis. The seasonally-adjusted annual rate (SAAR) for April was 5.04 million units, a drop from the 5.21 million pace in March.

In spite of the drop in April, NAR’s report says sales are still 6.1 percent above last April’s sales, and have increased year-over-year for seven straight months. Lawrence Yun, Chief Economist at NAR, states the low inventory led to the decline which is also pushing prices up, adding, “With low interest rates and job growth, more buyers will be encouraged to enter the market, unless prices accelerate even higher in relation to incomes.”

However, as MHProNews reported May 20, 2015, April housing starts rose 20.2 percent over March, and building permits increased 10.1 percent April over March, both of which should help stabilize home prices.

But Stephen Melman, an economist at the National Association of Home Builders (NAHB), expressed concern that first-time home buyers comprised only 30 percent of home sales in April, the same percent as in March. Historically, they make up 40 percent of home buyers, and that is key to a full housing recovery. ##

(Photo credit: Associated Press/Paul Sakuma)

Article submitted by Matthew J. Silver to Daily business News-MHProNews.