Existing home sales in July spiked to their highest level in five months, according to the National Association of Realtors. Sales of existing homes rose 3.1 percent to 5 million, up from 4.85 million in June. While these numbers are still 13.2 percent lower than existing home sales last year, the group said the new numbers may point to the housing market making a slow recovery.
“We hope the new tools in the hands of home buyers from the recently enacted housing stimulus package will spark a sustained sales uptrend in the months ahead,” said Richard F. Gaylor, president of the NAR. “Buyers who’ve been on the sidelines should take a closer look at what’s available to them now in terms of financing and incentives. Given some of the inventory on the market, we also strongly encourage buyers to get a professional home inspection.”
The national median for existing home prices was $212,400 in July, down 7.1 percent from a year ago at $228,600. However, Lawrence Yun, NAR's chief economist, said some regions of the country could soon see prices increasing.
“Sales have picked up significantly in several Florida and California markets. Home prices generally follow sales trends after a few months of lag time,” he said. “Still, inventory remains high in many parts of the country and will require time to fully absorb. We expect more balanced conditions in 2009 and will eventually return to normal long-term appreciation patterns.”
Total housing inventory rose 3.9 percent to 4.67 million existing homes for sale, up slightly from June. Single family supply declined, while condo inventory saw a sharp increase, the NAR reported.
Regionally, existing home sales increased everywhere but the South. In the West, sales of existing homes skyrocketed 9.7 percent in July to a level of 1.13 million and are 0.9 percent higher than July 2007. The median price in the West was $273,200, down 22.2 percent from a year ago.
In the Northeast, existing home sales rose 5.9 percent to an annual pace of 900,000 in July, which is still 11.8 percent down from a year ago. The median price in the Northeast was $278,700, which is 4.9 percent lower than July 2007.
Existing home sales in the Midwest increased 0.9 percent to an annual rate of 1.12 million in July, which is 17 percent lower than last year. The median price in the Midwest was $175,400, up 1 percent from a year ago.
In the South, existing home sales fell 0.5 percent to an annual pace of 1.85 million in July, which is 18.1 percent down from a year ago. The median price in the South was $179,300, down 3.5 percent from July 2007.
