Group Reports Record Pace of Existing-Home Sales

Despite rising prices, homebuyers' purchasing power remained strong in the first quarter, and the sales pace for existing homes set a record, the National Association of Realtors reported.

Though the median existing-home price of $131,600 was up 4.6% from the year-earlier period, the association reported rising sales in 42 states and the District of Columbia.

The average mortgage interest rate in the quarter rose to 6.95%, from 6.88% in the fourth quarter, but sales were at a record seasonally adjusted annual rate of 5.88 million units-8.4% above last year's first-quarter sales.

Realtors president Sharon Millett said the price increases were caused by purchase volume from both first-time buyers and those trading up.

In many markets, she added, entry-level buying has boosted activity in the higher price ranges by permitting other buyers to move up to their second homes.

The association said that housing affordability has also increased, despite rising interest rates and prices. The group's first-quarter affordability index showed that half the nation's households had at least 138.2% of the income needed to buy a home at the median price for the quarter.

All regions reported housing-price inflation. The biggest year-over-year increase was in Kalamazoo, Mich., where the median price rose to $108,700, up 13.6%.

San Francisco had the next largest increase, 13.2%, and Miami-Hialeah, Fla., had the third-largest, 12.9%.

The best year-over-year statewide sales increases ware in Kentucky, up 34.8%; the District of Columbia, 29.7%; and New Mexico, 29.3%.

The association said eight states-Delaware, Louisiana, Michigan, New York, North Dakota, Pennsylvania, Vermont, and West Virginia-reported declines in the home resale rate. Utah reported no change.

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