Residential property sales in the United States increase by 4% in July compared with the previous month and are now up 11% from a year ago, the biggest annual increase in sales volume so far this year.
The national median sales price was $174,500 in July, up 4% from the previous month and up 6% from a year ago, the 16th consecutive month where median home prices nationwide have increased annually after bottoming in March 2012.
The data from RealtyTrac, regarded as a leading source of comprehensive housing data, Shows that while sales volume continued to increase nationwide, some eight states posted annual decreases in total sales.
Those seeing a decline in annual sales included California which was down 17%, Arizona down 11%, Nevada down 7% and Georgia down 2%. These four states also posted the four biggest annual increases in median home prices in July with California up 31%, Nevada up 27%, Arizona up 21% and Georgia up 20%.
The median price of a distressed sale, that is a property that is in foreclosure or bank owned, was $120,000, up 1% from the previous month but down 1% from a year ago and 37% below the median sales price of a non distressed residential property.
‘Low inventory of homes available for sale is proving to be a double edged sword in many local housing markets that have bounced back quickly from the real estate slump,’ said Daren Blomquist, vice president at RealtyTrac.
‘Home prices are accelerating rapidly in these markets thanks to the combination of low supply and strong demand. However, counter to the national trend, sales volume in these markets is down even as the percentage of cash sales rises, indicating there is still strong demand but that buyers who need financing to purchase are increasingly left out in the cold,’ he explained.
‘The recent uptick in interest rates could also be contributing to a higher percentage of cash purchases as some non cash buyers can no longer afford to buy, particularly in high priced markets,’ Blomquist added.
All cash purchases nationwide accounted for 40% of all sales of residential property in July, up from 35% of all sales in June and up from 31% of all sales in July 2012. Among the nation’s 20 largest metro areas, those with the biggest month on month jumps in cash sales were Dallas up 82%, St. Louis up 66%, Los Angeles up 32%, Riverside-San Bernardino in Southern California up 26%, Seattle up 21% and Phoenix up 21%.
Short sales, where the sale price is below the combined total of outstanding mortgages secured by the property, accounted for 14% of all residential sales in July, up from 13% in June and up from 9% in July 2012. States with the highest percentage of short sales in July included Nevada with 35%, Florida with 30%, Maryland with 20%, Washington with 19% and Tennessee also at 19%.
Sales of bank owned properties (REO) accounted for 9% of all residential sales in July, also the same percentage as the previous month and a year ago. Metro areas with the highest percentages of REO sales included Detroit with 26%, Modesto in California with 25%, Stockton in California with 24%, Las Vegas also with 24% and Cleveland with 20%.
Among 20 of the nation’s largest metro areas with annual sales estimates tracked in the report, the biggest yea on year decreases in sales volume were in San Francisco which was down 20%, Los Angeles down 20%, San Diego down 19%, Riverside-San Bernardino down 14% Phoenix down 13%, and Atlanta down 8%.
Among 20 of the nation’s largest metro areas with annual sales estimates tracked in the report, the biggest year on year increases in sales volume were in Chicago which was up 27%, Minneapolis up 23%, Baltimore up 21%, Boston up 20% and Philadelphia up 20%.
Major metro areas where median residential property prices increased 20% or more from a year ago in July included Los Angeles up 29%, Atlanta up 24%, San Francisco up 35%, Riverside-San Bernardino up 26% and Phoenix up 25%.
Source: Property Wire