July Existing Home Sales Up 6.5%

Single-family existing home sales jumped 6.5% in July from the previous month as "demand for foreclosed and lower-priced homes spiked," according to the National Association of Realtors. NAR reported that sales of previously owned SF homes rose to a seasonally adjusted annual rate of 4.61 million in July, up from 4.33 million in June. "The housing market has decisively turned for the better," said NAR chief economist Lawrence Yun, who noted that sales have increased for four consecutive months. First-time homebuyers who are eligible for an $8,000 tax credit purchased 30% of the homes, and distressed sales made up 31% of transactions. "In some recovering markets like San Diego, Las Vegas, Phoenix, and Orlando, the demand for foreclosed and lower priced homes has spiked, and the lack of inventory is becoming a common complaint," Mr. Yun said. The median existing single-family home price was $178,300 in July, which is 14.6% below the sales price a year ago. The NAR report also shows that the inventory of unsold existing homes fell to an 8.6-month supply in July, down from a 10.4-month supply a year ago.