Sales of existing homes jumped much more than economists expected in August in response to low prices and historic interest rates, according to the National Association of Realtors.
Sales were up 7.7% month over month as the median home price fell 5.1% compared to last year. The National Association says increasing rents may be the cause for this uptick in sales.
“Favorable affordability conditions and rising rents are underlying motivations” – Lawrence Yun, N.A.R. Chief Economist
Economists had expected a rise of roughly 1.5%.
Sales in August were 18.6% higher than August of 2010.
With the Fed vowing to keep interest rates low for the next year, the opportunity for prospective buyers remains high and appear more confident in the housing market as evidenced by the spike in home sales.
Do you think real estate sales will continue the trend?
Are home values headed lower?
Let us know.
About Daniel Di Matteo
THE REAL ESTATE BUSINESS HAS LESS TO DO ABOUT SELLING PROPERTIES AND EVERYTHING TO DO ABOUT HELPING PEOPLE.
