Summer Home Sales Remain Strong

August sales move up 10.7 percent over 2014.

Summer Home Sales Remain StrongThe REAL Trends Housing Market Report for August 2015 shows that housing sales increased 10.7 percent from the same month a year ago. While down from year-over-year increases of the prior four months, indications are that housing continues to lead the economy.  All four regions reported unit sales rose from a year ago with the Northeast leading the way with an increase of 19.1 percent over a year ago.

“August housing sales jumped strongly, and that indicates that the housing market continues to have the wind at its back,” said Steve Murray, editor of the REAL Trends Housing Market Report.

The annual rate of new and existing home sales for August 2015 was 6.199 million units up from a rate of 5.601 million in August 2014.

Housing prices rose an average of 1.4 percent from August 2014 showing continued moderation in home price increases and the lowest year over year increase in prices since 2014.

“While the increase in the average price of homes sold slid again and is showing almost no increase, unit sales continue to climb in the double digits on a year-over-year basis,” Murray added. “Foreign purchases and the rise in the first-time homebuyer segment appear to have contributed to the continuing strength. It is important to note; however, that month-over-month changes in unit sales and average prices have both backed off their previous highs.”

Housing unit sales for August 2015 increased 19.1 percent in the Northeast, the best performance in all regions. Sales in the South region were up 9.7 percent, the Midwest saw an increase of 8.9 percent, and the West had an increase of 8.0 percent.

The average price of homes sold in August 2015 in the West region increased by 3.5 percent, the best result in the nation. The South saw average prices increase just 1.6 percent, average prices in the Midwest actually declined by 0.9 percent while the Northeast also experienced a decline in the average price of homes sold with prices dropping 1.7 percent.

“Recent reports from the National Association of Realtors® about strong increases in pending home sales would seem to presage additional strong increases in homes sales for the next month or two,” Murray added.

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This article originally appeared in the October 2015 issue of the REAL Trends Newsletter and is reprinted with permission of REAL Trends Inc. Copyright 2015.

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