A report from Re/Max covering 53 different markets found home sales dipped nearly 13% between June and July, but increased by over 13% when compared with July 2010. The data is not seasonally adjusted.
Traditionally, the company said, June is the best month of the year for home sales so there is usually a slight drop off in July. However, only one other month this year, January, saw higher home sales on a year-over-year basis.
Re/Max said stricter lending standards, bad appraisals and concerns about the economy contributed to lower than normal sales in July.
Furthermore, many lenders are already restricting their conforming and Federal Housing Administration loans to the lower limits expected to go into effect on Sept. 30.
Prices fell slightly between June and July, while the year-over-year decrease of less than 5% was the smallest the Re/Max survey has seen in six months. Detroit led the 11 markets where prices were higher than July 2010, up over 14%.
"The fact that July home sales were higher than a year ago, and by such a significant amount, gives us reason for great optimism," said Margaret Kelly, chief executive of Re/Max LLC. "And now that prices have risen for four of the past five months, the housing market is beginning to show definite signs of recovery."
