Housing Bubble

Housing leading way in turning economy around says HUD

June 25, 2003

WASHINGTON, -- The Census Bureau and HUD released data today showing that sales of new single-family homes set a new monthly record with 1.16 million homes sold in May. This is a 12.5 percent increase from April and a 17.9 percent increase from May of last year.

Existing home sales also increased in May, to the third highest monthly pace on record. According to the National Association of Realtors, sales of previously owned single-family homes rose 1.2 percent in May to a rate of 5.92 million units. This is 4.4 percent above May 2002.

"These increases are good news for American families and the nation. They show that housing is still leading way in turning our economy around. This Administration is committed to making it easier for more Americans to realize the dream of homeownership," said Housing and Urban Development Secretary Mel Martinez. "The President has proclaimed June as National Homeownership Month and HUD is leading the way by taking the message of empowering families through homeownership to communities nationwide."

This message is especially important to low and moderate-income minority families, whose homeownership rates have historically lagged well behind others. Recent census figures indicate that while nearly 70 percent of all Americans own their own homes, less than half of African-American and Hispanic families are homeowners.

As part of this effort, HUD and its housing industry partners are sponsoring events around the nation providing information about housing counseling, down-payment assistance, flexible mortgage financing and other resources for becoming a homeowner.

Earlier this year, the Administration announced several 2004 budget proposals aimed at increasing the production of affordable housing, combating regulatory barriers, and helping more low-income, minority families become homeowners. These proposals include: $113 million increase for the Department's HOME Investment Partnerships Program, which will boost the supply of housing that is affordable to low-income families, as well as an additional $200 million for the American Dream Downpayment Fund to help low- to moderate- income families become first-time homeowners and an added $2 million for research to help reduce regulatory barriers to affordable housing. Additionally, HUD is requesting an additional $10 million toward housing counseling to help thousands more low-income individuals and families find and maintain homes.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities, creating affordable housing opportunities for low-income Americans, supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov.

Source: U.S. Department of Housing and Urban Development