The National Association of Realtors reports existing home sales increased 7.6% in August 2010.
Supply is now at 11.6 months, down -7.2% from last month's 12.6 month supply. The median home price dropped to 178,600, down from last month's median home price of 182,100.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 7.6 percent to a seasonally adjusted annual rate of 4.13 million in August from an upwardly revised 3.84 million in July, but remain 19.0 percent below the 5.10 million-unit pace in August 2009.
Mortgages are at record lows:
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.43 percent in August from 4.56 percent in July; the rate was 5.19 percent in August 2009.
Over a third, of 34% of existing home sales were distressed sales. In other words, foreclosures, short sales.
A parallel NAR practitioner survey shows first-time buyers purchased 31 percent of homes in August, down from 38 percent in July. Investors rose to a 21 percent market share in August from 19 percent in July; the balance of purchases were by repeat buyers. All-cash sales slipped to 28 percent in August from 30 percent in July.
Existing home sales are -19.0% lower than one year ago and the supply is 26.1% higher than one year ago (monthly). By 2009, we were well into the residential housing market crisis by over 2 years.