Home Resales Surge to a 6.5-Year High!!

U.S. home resales hit a 6-1/2 year high in August as buyers flocked back to the market to lock in cheap borrowing costs amid rising mortgage rates, a signal of continued strength in the housing market recovery.

The National Association of Realtors said on Thursday existing home sales increased 1.7 percent to an annual rate of 5.48 million units last month, the highest level since February 2007 when property values began to decline after the sector’s boom and bust.

A couple of critical data points:

  • The months’ supply remained below the 6.0 months that is normally considered as a healthy balance between supply and demand.
  • The median US home sales price in August rose 14.7 percent from a year ago to $212,100.
  • Distressed properties, foreclosures and short sales, which typically occur at deep discounts, accounted for about 12 percent of overall sales last month, the lowest since NAR began tracking the data in 2008.  This is great news!!!
  • Investors bought 17 percent of homes in August, with first-time buyers accounting for 28 percent of the transactions.

Despite slightly rising mortgage rates it is a good time to sell and buy-up!

Make it a great day!

Jeff

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