What August Meant

Looking Back In An Effort To Look Forward
Generally speaking, what August revealed had more to do with previous months than with August itself. This is always the case, of course, as compiling the data takes time.

Early in the month, the NAR reported that pending home sales rose in June, the fifth straight month such an increase occurred. Loan refinancing for July also showed strong numbers, although not equal to the record territory seen this past March.

Toward the middle of the month, Zillow surprised no one by announcing that home prices had dipped in the second quarter. RealtyTrac reported that foreclosures increased 7% in July as compared with June and 32% from a year earlier.

By the end of August, the NAR was able to assess that existing home sales had risen more than 7% in the month of July, the largest monthly gain during the NAR’s ten years of tracking. Those looking to temper enthusiasm pointed out that supply also rose 7%, however. Foreclosure sales accounted for a full 20% of the market in July.

Uvestor Opportunity:
As September begins, several things come to mind. If not extended, there are only three months left for the $8,000 first-time homebuyer federal tax credit. Waning also are the warm summer days that provide the best atmosphere for buying and selling.

Multiple sources report that consumer confidence is rising, even in the face of surveys that do not indicate any increase in overall means or income. As the August numbers begin to pour in, expect the same trends to continue. Though foreclosures will rise and median home prices will remain sluggish, the strong buying, selling, and lending volumes will show that the industry certainly has some activity to it. And wherever there is activity, there is opportunity.