Lower home prices help sales of existing homes rise in 13 states
The association attributes the rise to homebuyers’ interest in lower home prices.
The group also reports that home prices rose in the second quarter from a year ago in nearly 25 percent of metropolitan areas.
“In many areas with large concentrations of foreclosure sales, homes are being purchased below replacement cost values,” said NAR President Richard Gaylord. “Many buyers with long-term expectations are getting exceptional value in the current market. Once the inventory is drawn down, price pressure will return because the costs of construction are rising.”
According to the association, existing-home sales grew 25.8 percent in California, 25 percent in Nevada, 20.5 percent in Arizona and 10.1 percent in Florida compared with the first quarter.
“The biggest home-sales gains over the previous quarter have been in some of the markets with the steepest and fastest price drops,” said Lawrence Yun, the chief economist at NAR.
The Sacramento-Arden-Arcade-Roseville area of California saw the sharpest fall in single-family home prices in the second quarter. In that area, the median price of $229,500 dropped 35.6 percent from a year ago, the association said.
- Intero Client Services
Intero Real Estate Services is one of the premier real estate brokerages in the nation. It has 60 offices with more than 2,200 sales associates serving Arizona, California, Colorado, Florida, Hawaii, Nevada and Texas.
- National Association of REALTORS®
NAR represents 1.2 million members involved in the residential and commercial real estate industries