Existing home sales gain momentum

An uptick in home buying during May could lead new owners to shop around for insurance quotes

Individuals, couples and families may soon start shopping for home insurance quotes - existing house sales climbed higher in May.

According to the National Association of Realtors, affordable home prices and first-time buyer tax credits were the driving forces behind the second consecutive increase in existing home sales since September 2005.

"Historically low mortgage interest rates clearly drew buyers into the market, and housing remains very affordable even with a recent uptick in rates," said NAR chief economist Lawrence Yun.

Yun suggested that the number of home sales could be even higher.

"[T]he increase in sales is less than expected because poor appraisals are stalling transactions. Pending home sales indicated much stronger activity, but some contracts are falling through from faulty valuations that keep buyers from getting a loan," he added.

First-time buyers in the area of the country prone to hurricane damage should be sure to investigate the appropriate coverage needed to protect their new property. Standard home insurance plans may not include provisions for flood or hurricane damage.

Discover how easy shopping can be. Get your free home insurance quotes now.

Posted: June 23, 2009

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