According to the National Association of Realtors home existing sales shot up substantially in July - by 7.2% over June. This was the largest month-over-month gain since the index began in 1999. This also sets a record by being the first time since November 2005 that home sales volume is up year-over-year, establishing a solid trend and indicating that this could be more than just a random increase month-over-month.
While home sales volumes are up, median prices continue to fall nationally, down 15.1% year-over-year and 2% from June to July. This indicates that most of the increase in sales volume continues to be at the lower end - comprised of first-time-buyers, bargain hunters, and investors.
In Philadelphia, sales volume rose 3% from June to July but is down slightly year over year, while the average sales price is down by 10-11% on a month-over-month and year-over-year basis. With a smaller sample size though these local figures are much more volatile, and vary greatly from neighborhood to neighborhood.
While a bottom in real estate may be close-at-hand, it's important to realize that there are still many risks in today's market, and you can still make mistakes and lose money even when buying at the bottom. We haven't reached a point (and probably won't) where every property on the market is a bargain - you still have to make you're own deals by negotiation and careful planning. It's more important than ever to do your homework and work with an experienced agent so that you can catch the wave at the bottom and ride it up instead of watching others pass you by.
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