In an article in USA Today, The Journal News on Friday, August 22, 2014 by Paul Davidson stated existing home sales climbed last month to their fastest pace since September 2013, which is evidence that the housing markets is bouncing back after a sluggish first half of the year.
Sales rose 2.4% to a seasonally adjusted annual rate of 5.15 million and has increased for four straight months, according to the National Association of Realtors. The total beat analysts’ estimates although sales remain 4.3% below 2013.
The Chief Economist, Lawrence Yun attributed the solid sales to growing housing inventory and moderately price increases. Single family home sales increased 2.7% in July which condominium and co-op sales were unchanged. Housing starts also increased in July. The homes for sale inventory rose 3.5% to 2.4 million which represents a 5.5 month supply. Economist Patrick Newport and Stephanie Karol of HIS Global Insight states “a virtuous inventory entices buyers into the market”.
The housing market also revealed a milestone in the stock of distressed homes, including foreclosures and short sales fell to 9% of all sales. This is the first time that numbers slipped to single digits since 2008. In 2009 troubled sales represented 36% of all sales.
The first time home buyer rose for the second straight month to 29% although, they remained below 40% considered normal. First time buyers have been hampered by stringent criteria for credit scores and down payment. The South leD the gains with sales in the region rising 3.4%. Sales increased 2.6% in the West and 1.7% in the Midwest and unchanged in the North East.
If you are in the need of a real estate attorney, contact the law firm of Dominick J. Robustelli & Associates, PLLC at (914) 288-0800.