With low
interest rates and a labor market that is steadily growing its only a lack of
inventory that keeping home sales from rising even more.
Existing-home sales steadily increased for the third consecutive
month in July, while stubbornly low inventory levels and rising prices are
likely to blame for sales to first-time buyers falling to their lowest share
since January, according to the National Association of Realtors®.
Total existing-home sales, which are completed transactions that
include single-family homes, townhomes, condominiums and co-ops, increased 2.0
percent to a seasonally adjusted annual rate of 5.59 million in July
from 5.48 million in June. Sales
in July remained at the highest pace since February 2007 (5.79
million), have now increased
year-over-year for ten consecutive months and are 10.3 percent
above a year ago (5.07 million).
The median existing-home price for all housing types in July was $234,000, which is 5.6 percent above July 2014. July's price increase marks the 41st consecutive month of year-over-year gains.
Total housing inventory at the end of July declined 0.4 percent to 2.24 million existing homes available for sale, and is now 4.7 percent lower than a year ago (2.35 million). Unsold inventory is at a 4.8-month supply at the current sales pace, down from 4.9 months in June.
Lawrence Yun, NAR chief economist, says the increase in sales in July solidifies what has been an impressive growth in activity during this year's peak buying season. "The creation of jobs added at a steady clip and the prospect of higher mortgage rates and home prices down the road is encouraging more households to buy now," he said. "As a result, current homeowners are using their increasing housing equity towards the down payment on their next purchase."
Source:
Brian Woolly
Prospect Mortgage
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