Sales of existing homes rose in 2.3 percent in July to a seasonally adjusted rate of 4.47 million from 4.37 million in June, according to the latest figures from the National Association of Realtors (NAR). Monthly sales rose in every region but the West, where inventory is very tight, and the current rate is 10.4 percent above the 4.05 million-unit pace of July 2011.
Sales of single-family units also rose, climbing 2.1 percent to an annual rate of 3.98 million in July from 3.90 million in June. Sales of single-family units currently stand at 9.9 percent above the 3.62 million-unit level in July 2011. Also, the median existing single-family home price was $188,100 in July, up 9.6 percent from a year ago.
"Mortgage interest rates have been at record lows this year while rents have been rising at faster rates, said NAR Chief Economist Lawrence Yun. "Combined, these factors are helping to unleash a pent-up demand; however, the market is constrained by unnecessarily tight lending standards and shrinking inventory supplies, so housing could easily be much stronger without these abnormal frictions."
