How About Some Good News For A Change

It's nice to see existing home sales starting to move up (I'm sure my real estate agent brother is happy about that). The only negative is that 31% of sales were short sales and foreclosure sales that were sold at distressed prices. Although report is better than expected, the housing market is still in bad shape.-Lou

Existing-Home Sales Rise 7.2%

WASHINGTON (MarketWatch) -- Resales of U.S. single-family homes and condos rose 7.2% in July to a seasonally adjusted annual rate of 5.24 million, the highest level since August 2007, the National Association of Realtors reported Friday.

Resales have gained for four consecutive straight months, the longest streak of increases since 2004. "Momentum is building," said Lawrence Yun, NAR's chief economist.
Economists surveyed by MarketWatch had expected sales to rise to an annual rate of 5 million, from a June reading of 4.89 million.

The inventory of unsold homes remained elevated, rising 7.3% to 4.09 million in July. There was a 9.4-month supply at the July sales pace, matching the prior month's result.

Without seasonal adjustment, the median sales price fell 15.1% in the past year to $178,400. Distressed properties accounted for 31% of sales in July. Realtors and economists agree that tax incentives have brought a lot of first-time buyers to the market.

While affordability is high, it's clear that some owners are distressed. On Thursday, the Mortgage Bankers Association reported that the percentage of residential mortgages either in foreclosure or with at least one payment past due hit 13.16% in the second quarter, a record high percentage.

Earlier this month, NAR reported that pending sales of existing homes rose in June for the fifth straight month, the longest streak of gains since 2003, as buyers were encouraged by low interest rates and bargain home prices.