The Pace of U.S. Home Sales is Fastest in Two Years: Sales of previously owned U.S. homes jumped 7.2 percent in July to mark the fastest sales pace in nearly two years in a strong sign that housing is pulling out of a three-year slump. Sales in July rose for the fourth straight month to hit an annual rate of 5.24 million units, the highest rate since August 2007, the National Association of Realtors said, beating market expectations for a 5 million unit pace. Sales in June had been at a 4.89 million pace. July's increase was the largest monthly gain since the series started in 1999. The last time sales rose for four consecutive months was in June 2004, the NAR said. The Realtors group heralded the July sales as a turning point, while some observers offered a more cautious view. "The housing market has decisively turned for the better. We are bouncing back," NAR chief economist Lawrence Yun told reporters. "Overall, these figures may suggest that the recovery in housing activity is gathering pace, but there is a long way to go yet," said Paul Dales, U.S. economist at Capital Economics in Toronto. U.S. Federal Reserve Chairman Ben Bernanke, speaking at a gathering of central bankers and top economists in Jackson Hole, Wyoming, said prospects for a resumption in global economic growth after a deep contraction looked good "in the near term. (courtesy of Reuters news feed 10/21/09)
Regional Snapshot: The inventory of homes for sale in Sacramento County peaked during the "dark days" of October in 2008 at 7,731. In July, 2009, the available inventory of homes for sale in Sacramento County dropped again to 5,626 homes, more than 2,000 housing units below the peak. The number of home sales rose for the 7th consecutive month, closing out July with 1,854 sales. The most interesting trend I am watching these days is the number of short sales available, relative to total active listings. Of the 5,626 homes for sale in July, 3,331 were short sale listings, which was 59% of the total. Add the 661 Bank Owned Homes to the equation and you had nearly 4,000 (71%) of the homes for sale in July being distressed homes.
Folsom: From a statistical standpoint, on the surface, July looked like a great month in Folsom. There were 70 home sales (the best month since July of 2008) and the supply of homes dropped to 3 months. Taking a closer look, inventory rose again to 285 homes, and the average dollar generated per square foot dropped strongly from $184 the previous month to $164 in July. This is a familiar tune being heard across the country, homes sales are up, along with "bang-for-the-buck" for home buyers. Deals are abound...
Written by Aaron Cullen - Brokers Inc. Residential Real Estate - www.BrokersCorp.com
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