Home Sales Jump Nearly 8%

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

Realtor at CENTURY 21 Award, Daniel was Voted U-T San Diego’s Best Real Estate Agent in 2014. A Husband, Father, and most recently, accomplished Blog writer, which explains your visit today.