Existing-home sales highest since 2007

In addition, sales are 13.2 percent higher than the 4.84 million-unit level in August 2012.

The national median existing-home price for all housing types was $212,100 in August, up 14.7 percent from a year ago. 

The median price reflects nine consecutive months of double-digit year-over-year increases and is the strongest yearly price gain since October 2005.

{mosads}But there is some concern that the market may be experiencing a temporary peak amid rising interest rates.

“Rising mortgage interest rates pushed more buyers to close deals, but monthly sales are likely to be uneven in the months ahead from several market frictions,” said Lawrence Yun, NAR’s chief economist.

“Tight inventory is limiting choices in many areas, higher mortgage interest rates mean affordability isn’t as favorable as it was and restrictive mortgage lending standards are keeping some otherwise qualified buyers from completing a purchase.”

Total housing inventory at the end of August increased 0.4 percent to 2.25 million existing homes available for sale, which represents a 4.9-month supply at the current sales pace, down from a five-month supply in July.

The average rate for a 30-year, conventional, fixed-rate mortgage rose to 4.46 percent in August from 4.37 percent in July, and is the highest since July 2011 when it was 4.55 percent.

The rate was 3.60 percent a year ago.

Distressed homes — foreclosures and short sales — accounted for 12 percent of August sales, down from 15 percent in July, and is the lowest share since monthly tracking began in October 2008.

Ongoing declines in the share of distressed sales are helping to boost the median price.

In August, 8 percent of sales were foreclosures, while 4 percent were short sales.

NAR President Gary Thomas said rising home values will encourage more people to sell.

“As the equity position of most homeowners continues to improve, some who have been on the sidelines will list their home for sale,” he said

“Most of those owners also will be buying another home, but higher levels of new home construction going into 2014, combined with some reduction in demand from less favorable affordability conditions, will help to moderate price growth to more sustainable levels.”

First-time buyers accounted for 28 percent of purchases in August, down from 29 percent in July and 31 percent a year ago.

All-cash sales made up 32 percent of transactions in August, up slightly from 31 percent in July.  

Individual investors, who account for many cash sales, purchased 17 percent of homes in August, compared with 16 percent in July.

Single-family home sales rose 1.7 percent to a seasonally adjusted annual rate of 4.84 million in August from 4.76 million in July and are 12.8 percent above the 4.29 million-unit pace in August 2012.

Regionally, existing-home sales were unchanged in the Northeast, were up 3.1 percent the Midwest, gained 3.8 percent in the South and fell 2.3 percent in the West.