U.S. Existing Home Sales Down By 1 Percent In April, Prices Down 8 Percent

Washington, D.C. (AHN) - The U.S. existing home sales for the month of April declined due to tighter credit requirements.

The National Association of Realtors reported Friday that previously owned homes including single-family, townhomes, condominiums and co-ops dropped by 1 percent last month.

A seasonally-adjusted annual rate of 4.89 million existing homes were sold in April, down from a revised 4.94 million figure for March, the report said.

Analysts had predicted existing home sales would fall to a record low 4.85 million.

Sales of existing homes have declined sharply by as much as 17.5 percent over the past one year. Resales have also dropped by 33 percent compared to its peak in 2005.

Median sales prices in April dropped 8 percent compared to the same month in 2007 to $202,300. That was the second largest year-over-year decline.

Home inventories rose 10.5 percent to 4.55 million units, an 11.2 month supply at the present sales rate.

However, both Fannie Mae and Freddie Mac have eased lending requirements, easing rules requiring larger down payments in the areas hit badly by the housing slump.

With the new policy, the new down payment would be as low as between 3 percent up to 5 percent on loans for the purchase of single-family, which are considered as primary residences.