Existing Home Sales Rise Despite Price Hikes

Total housing inventory stood at 2.4 million existing homes at the end of July, up slightly from 2.39 million in June. The total represents a 6.4-month supply at the pace of sales. Last July the inventory stood at a 7.1-month supply.

The nationwide median price for an existing home sale was $187,300, up 9.4% from July 2011.

Combined with today’s earlier report on mortgage applications and the solid earnings report from homebuilder Toll Bros. Inc. (NYSE: TOL), the U.S. housing market continues to make a comeback.

While the NAR’s figures on sales are important — especially to the group’s member Realtors — the inventory numbers are probably more important as a measure of where the market is headed. Based on existing home inventory, the housing market continues its recovery.

Paul Ausick