WASHINGTON — Home resales rose in July, surpassing expectations, as buyers snapped up deeply discounted properties in parts of the country hit hardest by the housing bust.
However, the number of unsold properties hit an all-time high, the latest indication that the worst housing slump in decades is far from over. Prices nationwide are not expected to hit bottom until early next year.
The National Association of Realtors reported Monday that sales rose 3.1 percent to a seasonally adjusted annual rate of 5 million units, up from June’s downwardly revised rate of 4.85 million units. Sales had been expected to rise by 1.6 percent, according to economists surveyed by Thomson/IFR.
“The process of a recovery has begun,” said Joel Naroff, president of Naroff Economic Advisors. “It’s not going to be short and swift, but it’s begun nonetheless.”
Home sales were about 13 percent lower than a year ago, and prices were down drastically. The median price for a home sold in July dropped to $212,000, down 7.1 percent from a year ago.
Separate data released earlier this month showed that the number of existing homes sold in the Denver metro area in July was up 3 percent from the previous year.
The median price for a single-family home in the Denver metro area fell 10.1 percent from last year, dropping to $229,200 from $255,000 in July 2007. Condos sold for a median of $149,000, 5.7 percent less than the $158,000 in July 2007.
Between 33 percent and 40 percent of sales activity is coming from foreclosures or other distressed properties, estimated Lawrence Yun, NAR chief economist.
“People are responding to lower prices,” Yun said.
Denver Post staff writer Alex McCarthy contributed to this report.
