Decline in Home Sales Blamed on Mortgage Delays

The National Association of Realtors claims that uncertainties about a federal flood insurance program and delays in mortgage applications contributed to the dip in existing home sales in May. The association reported that there were 5.66 million existing home sales across the country in May, down from April’s 5.79 million and far short of analysts’ estimates of 6.12 million. While the numbers disappointed industry analysts, May’s existing home sales did show a year-over-year improvement of 19 percent over May 2009. Lawrence Yun, the realtor association’s chief economist, speculated that May’s home sales received a boost from the expiring home buyer tax credit, and he did not expect that June’s home sales would reflect a similar year-over-year improvement. “We are witnessing the ongoing effects of the home buyer tax credit, which we will also see in June real estate closings,” Mr. Yun said. “However, approximately 180,000 home buyers who signed a contract in good faith to receive the tax credit may not be able to finalize by the end of June due to delays in the mortgage process, particularly for short sales.” Congress failed to extend the country’s flood insurance program before it recessed in March, causing its suspension until President Obama signed a temporary extension until May 31. This may have had an impact on home sales as lenders require flood insurance before they will provide mortgages for homes in flood-prone areas. Lenders require the owners of more than one-third of homes in Florida and Louisiana to carry flood insurance before they will provide mortgages. If you’re one of the flood of people thinking of buying Louisville homes, but are frustrated by limited listings on other sites, we invite you to grab a cup of coffee and view the Louisville homes for sale on our site. We have the area’s best selection of Louisville homes and provide a wide range of services for buyers and sellers. Call us today at 502.744.9504 for more information! Resource link:

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James Powell

Jim Powell has over 20 years of experience buying and selling luxury real estate in Louisville, KY and Managing over hundreds or rental properties across the city.
Jim Powell (License #191501)

Lauren Ghanavatian

Lauren Ghanavatian attended Assumption High School and the University of Louisville. Growing up in Louisville gave her a sense of the unique and diverse communities this city has to offer.

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Louisville Properties is a full service Louisville Real Estate Company for buyers and sellers of real estate. We offer the following services
3418 Frankfort Ave #100 Louisville, KY 40207 Louisville, KY 40207
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Phone: 1-502-744-9504

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