According to what businessinsider tells MHProNews, the National Association of Realtors (NAR) reports existing home sales in July rose two percent at an annualized rate of 5.59 homes, the highest in eight years. Sales of single-family homes rose 2.7 percent to an annual rate of 4.96 million, the highest since Feb. 2007. Economists had predicted the rate would fall 1.2 percent. Sales of existing co-ops and condos fell 3.1 percent.

Lawrence Yun, NAR chief economist, said, “The increase in sales in July solidifies what has been an impressive growth in activity during this year’s peak buying season. As a result, current homeowners are using their increasing housing equity towards the down payment on their next purchase.”

The median price of an existing home hit $234,000, 5.6 percent higher than one year ago, but demand could slow if prices continue to rise. MHProNews understands if home prices outpace wages, the demand for homes may pull back, although the addition of 200,000 jobs per month and improved confidence may continue to push home sales. However, a potential rise in interest rates could also harm rising sales. ##

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Article submitted by Matthew J. Silver to Daily business News-MHProNews.