The San Francisco housing market has been extremely hot for some time now, but it has taken other parts of the country a while longer to get back on track from the recession. Now it seems that the rest of the nation has finally joined in the “house party.”
The National Association of Realtors® recently reported that existing-home sales steadily increased for the third consecutive month in July, reaching the highest pace since before the recession in February 2007.
Total existing-home sales, including single-family homes, townhomes, condominiums and co-ops, increased 10.3 percent from a year ago and 2 percent from June to a seasonally adjusted annual rate of 5.59 million in July. Sales in July were most since February 2007’s 5.79 million and have now increased year-over-year for ten consecutive months.
Lawrence Yun, NAR chief economist, says the increase in sales in July solidifies what has been an impressive growth in activity during this year’s peak buying season.
“The creation of jobs added at a steady clip and the prospect of higher mortgage rates and home prices down the road is encouraging more households to buy now,” he said. “As a result, current homeowners are using their increasing housing equity towards the down payment on their next purchase.”
The pick up in nationwide sales activity bolds well for the overall economy since the housing market is one of the main pillars of the economy. But the latest report isn’t without some cautionary signs.
One segment of the population, first-time homebuyers, have not jumped into the market to the same degree as the rest of the consumers. NAR blamed stubbornly low inventory levels and rising prices for sales to first-time buyers falling to their lowest share since January.
Hopefully as inventory begins to inch up, the housing market nationwide will begin to balance out a little more between buyers and sellers, giving first-time buyers a better chance to get into a home at long last.
The National Association of Realtors® recently reported that existing-home sales steadily increased for the third consecutive month in July, reaching the highest pace since before the recession in February 2007.
Total existing-home sales, including single-family homes, townhomes, condominiums and co-ops, increased 10.3 percent from a year ago and 2 percent from June to a seasonally adjusted annual rate of 5.59 million in July. Sales in July were most since February 2007’s 5.79 million and have now increased year-over-year for ten consecutive months.
Lawrence Yun, NAR chief economist, says the increase in sales in July solidifies what has been an impressive growth in activity during this year’s peak buying season.
“The creation of jobs added at a steady clip and the prospect of higher mortgage rates and home prices down the road is encouraging more households to buy now,” he said. “As a result, current homeowners are using their increasing housing equity towards the down payment on their next purchase.”
The pick up in nationwide sales activity bolds well for the overall economy since the housing market is one of the main pillars of the economy. But the latest report isn’t without some cautionary signs.
One segment of the population, first-time homebuyers, have not jumped into the market to the same degree as the rest of the consumers. NAR blamed stubbornly low inventory levels and rising prices for sales to first-time buyers falling to their lowest share since January.
Hopefully as inventory begins to inch up, the housing market nationwide will begin to balance out a little more between buyers and sellers, giving first-time buyers a better chance to get into a home at long last.