New Home Sales Unexpectedly UP in May

WASHINGTON -- June 26, 2006 -- Sales of new U.S. homes rose in May, surprising economists who had been forecasting that housing would slow down because of rising mortgage rates.

The Commerce Department reported that sales of new single-family homes increased by 4.6 percent in May to a seasonally adjusted annual rate of 1.234 million units. The median price of homes sold did decline to $235,300, a drop of 4.3 percent from the April sales price.

Analysts are still looking for sales of both new and existing homes to fall by around 10 percent this year as rising mortgage rates crimp demand. The lowest mortgage rates in four decades helped to propel sales to five straight annual records.

The 4.6 percent increase in sales pushed the sales rate to the highest level since last December and followed increases of 5.9 percent in April and 7.3 percent in March. The previous months' increases had been helped by unusually mild weather.

(Read more at http://tinyurl.com/p7674 source: Planet Realtor)

Could this be the bottom of the pullback in both price and volume for home sales? We may be seeing a turn around in the housing market -- just as expected by those in the industry. All the disasterous predictions just aren't coming true.

Our Bradenton - Sarasota market may be bottoming out and poised for a return to a more stable upward market. Check this blog around July 6th for our latest Current Market Condtions Report.