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Existing homes sales in US set record in July
Washington, Aug 26: Sales of existing US homes rose 5.0 per cent in July to a record high in what was probably the peak of the US housing boom, the National Association of Realtors said on Monday.
The median sales price of pre-owned homes surged to $182,100 in July, up 12.1 per cent from the same month a year earlier. That was the biggest climb since November 1980.
"The record performance in the July numbers is most probably the peak in housing that we'll observe. It makes sense when you look at where interest rates are," said David Lereah, the chief economist for NAR.
Existing homes inventories fell 4.4 per cent to 2.39 million homes available for sale, or a 4.7 months' supply at the current sales pace.
The busy US housing market has been a bright spot in an otherwise struggling US economy as mortgage interest rates have slipped to lows not seen since the 1960s. But a recent climb in home loan rates is expected eventually to slow housing activity.
In the near term, however, economists anticipate strong home sales even as rates drift up, as procrastinating buyers jump to take advantage of rates still at historically low levels.
Last week, the government reported that July housing starts were at the highest monthly level in 17 years.
Bureau Report