Existing-home Sales Slip From Record in April

Somewhat higher mortgage rates in the first few months of the homebuying season appear to have dented the unsurpassed continued growth in the housing market, reducing April sales of existing homes by 3.3 percent to 5.24 million, compared to a projection of 5.42 million homes sold the month before.

Nevertheless, the National Association of Realtors® reports last month's resales were 6.3 percent above the 4.93-million unit rate recorded in April 1998.

The NAR also reported the national median price of an existing-home in April was $131,400, up 4.5 percent from the same month a year ago, when the median price was $125,800.

Sharon Millett, head of the 730,000-member trade association, said economists and housing professionals had expected a slowdown.

"We have to keep in mind that until last year, there's never been a sales pace above 5 million units -- sustained sales in this range speaks to the importance of homeownership and the positive economic factors that are allowing people to achieve this great American Dream," she said.

NAR economist James F. Smith said April's sales decline was consistent with the upward blip in mortgage interest rates. "The rise in interest rates earlier this Spring caused a temporary postponement of purchase decisions -- we expect mortgage rates to decline in the near future and trend downward during the second half of the year," he said. "Existing-home sales in 1999 will be very close to last year's record.

According to the Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.92 percent in April, down from 7.13 percent in March. It was 7.14 percent in April 1998.

Builders see bright tomorrow

Builders of new homes are saying they are confident the current housing boom will continue for the foreseeable future.

According to the monthly Housing Market Index published by the National Association of Home Builders, builders around the country rate the market at a 78 -- meaning they expect strong sales for the next several months. The HMI is up from 70 last month.

Builder President Charlie Ruma warned, however, that "builders continue to report shortages and price increases for essential building materials, especially gypsum wallboard and insulation. They also continue to be concerned about the shortage of skilled construction workers in this very tight labor market, and about the shortage of finished lots in many markets."

Where the rich live

WORTH magazine is out with it's listing of most expensive places in America to buy houses. It surveyed some 250 communities over the past two years to figure out the median sales price.

Here is their list of the top 10:

• Jupiter Island, FL $1,700,000
• Aspen, Colo. $1,620,000
• Atherton, Calif. $1,537,500
• Hillsborough, Calif. $1,250,000
• Belvedere, Calif. $1,225,000
• Mountain Village, Colo. $1,206, 000
• Rolling Hills, Calif. $1,205,000
• Snowmass Village, Colo. $1,120,150
• Los Altos Hills, Calif. $1,102,000
• Rancho Santa Fe, Calif. $1,100,000

Across the board, California has the most towns on the list with 76, followed by New York with 48, New Jersey with 25 and Illinois with 17.