Home sales are on the rise in May thanks mostly to a huge drop in pricing and the government’s push to attract new home buyers with tax credits. May saw a jump of 2.4% to a seasonally adjusted annual rate of 4.77 million units. The median price of homes were only just $173,00 – 16.8% down compared to May of last year.
The federal government is now intent on spurring on home sales by allotting $6 billion for a program dubbed as the Neighborhood Stabilization Program which aims to reduce the number of foreclosed homes.
The money, which has only started to flow during the past few weeks despite much of it being authorized last summer, will go to state and local housing authorities and non-profit organizations involved in providing housing for middle- and low-income families.
The real estate market took a beating when mortgage giants Freddie Mac and Fannie Mae faced collapse last year. Home foreclosures combined with massive layoffs pushed many American families to the limits.
Source: CNN
