The National Association of Realtors is reporting that May saw a gain in the sale of existing homes -- up by 2.4 percent.

Regionally, existing-home sales varied:

• Northeast: rose 3.9 percent

• Midwest: rose 9.0 percent

• South: unchanged

• West: down 0.9 percent

Are we out of the woods? Dr. Lawrence Yun said the appraisal problem is serious. "Lenders are using appraisers who may not be familiar with a neighborhood, or who compare traditional homes with distressed and discounted sales," he said. "In the past month, stories of appraisal problems have been snowballing from across the country with many contracts falling through at the last moment. There is danger of a delayed housing market recovery and a further rise in foreclosures if the appraisal problems are not quickly corrected."

Published: June 30, 2009

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