Sales of existing single-family homes jumped 8.5% in August despite hurricane weather in the Northeast, igniting hopes that the long beleaguered housing market could be coming up for air.
The National Association of Realtors reported that sales of previously owned homes rose to an annualized rate of 4.47 million units in August compared to a 4.12 million rate in July.
The trade group noted that investors, in particular, were active during the month, accounting for 22% of purchases, up from 18% in July. Moreover, all-cash sales comprised 29% of transactions in August. (Investors generally account for most of the cash purchases.)
Sales in the Pacific and Mountain states rose by an impressive 19% but in the Northeast increased by just 3.6%.
Although the numbers, on the surface, look decent, NAR is cautioning against celebrations, noting that the performance could be the result of transaction delays caused by appraisal problems or other factors which slowed activity in June and July.
The median existing single-family home price fell to $168,400 in August, down 5.4% from a year ago.
Separately, NAR, homebuilders and mortgage bankers are urging the Federal Housing Administration to re-open its 203(k) program to investors who want to buy and renovate foreclosed properties.
"This will facilitate the rehab of the existing housing stock and increase the availability of financing for rental housing," Allan Dechert, president of the New Jersey Association of Realtors told a Senate panel this week.
FHA officials were planning to lift the moratorium on investor participation in the 203(k) program this past spring, but when Federal Housing Commissioner David Stevens stepped down to head the Mortgage Bankers Associations the idea was put on hold.
According to NAR, 3.01 million previously owned single-family homes are for sale, which translates into a 8.3-month supply.
