Existing Home Sales Rise 7.7% to 5.03M Rate

Existing home sales increased 7.7% in August to a seasonally adjusted 5.03 million-unit rate, after an unrevised 4.67 million unit rate in July, the National Association of Realtors announced Wednesday.

Economists polled by Thomson Reuters predicted 4.74 million sales.

On a year-over-year basis, sales overall were up 18.6% from a 4.24 million-unit sales pace last August.

“Some of the improvement in August may result from sales that were delayed in preceding months, but favorable affordability conditions and rising rents are underlying motivations,” said NAR chief economist Lawrence Yun. “Investors were more active in absorbing foreclosed properties. In additional to bargain hunting, some investors are in the market to hedge against higher inflation.”

“We had some disruptions from Hurricane Irene in the closing weekend of August, when many sales normally are finalized, along the Eastern seaboard and in New England,” Yun said. “As a result, the Northeast saw the smallest sales gain in August, and some general impact is expected in September with widespread flooding from Tropical Storm Lee. Aberrations in housing data are possible over the next couple months as markets recover from disrupted closings and storm damage.”

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