NAR Report Shows Strong July

Existing Home Sales Are Going Up, Up, Up
Friday’s report issued by the National Association of Realtors showed positive numbers in July, as existing home sales rose more than 7%--the largest monthly gain in the ten years that the NAR has been tracking data.

The numbers also blew away the pace set in July 2008 by more than 5%, which is the first year-over-year increase the report has documented in nearly four years. The numbers have been steadily climbing since April, and though the median sale price dipped a bit for the month, the number of foreclosures contributing to the sales declined, as well.

For those looking for reasons to temper enthusiasm, the supply did increase 7%. With lots of foreclosures seemingly in the pipeline and even more homeowners considering jumping into the fray, median sale prices are likely to continue the struggle to gain traction.

Uvestor Opportunity:
Summer is summer, and sales always go up during the warmer months. That said, most agree that July had a little something extra special to it this year. The fact that it did not hinge mainly on foreclosure sales demonstrated that the entire market opened up a bit.

Though some increasingly nervous sellers probably acquiesced finally and took less than they had been hoping to get, it seems good for all involved that some buying is taking place outside the realm of bank-owned properties and investors seeking out bargains. After all, real estate investors are not trying to sell to one another, so an injection of confidence about traditional homebuyers and those often-mentioned first-timers shows there is some room to sell for the remainder of the warm months.