Sales of existing U.S. homes increased in every region of the country in August, according to data from the National Association of Realtors, a welcome change after a few months of decline.
"Some improvement in August can derive from sales that were late in previous months, but favorable conditions, accessibility and increase rents at the base of motives," Lawrence Yun, NAR Chief Economist said in a press release. "Investors were more active in absorption of foreclosed properties. In additional to bargain hunting, some investors are on the market to hedge against inflation. "
Sales of existing homes jumped up 7.7 percent to a seasonally adjusted annual rate of 5.03 million units in August, from 4.67 million revised upward in July. The new number is 18.6 percent from a year ago.
The median price for existing homes is now $ 168,300, down 5.1 per cent from August 2010. Total inventory was down 3.0 percent on a monthly basis, 3.58 million homes, which is a supply of 8.5 months at current sales pace. In July, there was a supply of 9.5-month.
By region, sales in the Northeast grew 2.7 percent in August, while the Midwest saw increased sales of 3.8 percent. Southern sales were 5.4 percent, and sales skyrocketed in the West, where they increased 18.3%.
NAR President Ron Phipps said that market conditions are very affordable, but some reefs at home sales still exist.
"Throughout the year, the ratio of housing prices, interest rates and family income has been hovering at historic highs, meaning the best accessibility housing conditions in a generation," he said. "The biggest factor keeping home sales a healthy recovery were denied mortgages creditworthy buyers and evaluated assessments below the price negotiated."
Amber Nelson on September 23, 2011 in mortgage news, real estate information
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