August 2011 Home Sales up 7.7 percent

Median Housing Price Going Down - BSN

(Best Syndication News) - The National Association of Realtors announced that existing home sales increased by 7.7 percent in August on a seasonally adjusted annual rate. There were 5.03 million homes sold in August 2011 compared to 4.24 million sold in August 2010, which is an increase of 18.6 percent.

The report found that real estate investors helped with the increase. There were 22 percent of the home purchased by investors. First time homebuyers are also a factor with 32 percent of the homes being purchased by these people.

All cash transactions were also a trend. Cash buyers attributed 29 percent of the existing home sales. The majority of cash buyers are real estate investors. According the organization, financing properties continues to be tight and there are still many appraisal problems to meet financing requirements.

The Freddie Mac survey has reported lower interest rates on average in August with an average 4.27 percent interest rate for a 30-year fixed rate conventional home mortgage loan. In July, the average interest rate for this kind of loan was 4.55 percent. The mortgage interest rates are currently on a downward trend again. Freddie Mac reported the average rate for a 30-year fixed rate mortgage hit a record low of 4.09 percent last week.

The median existing home price for all types of homes fell 5.1 percent in August 2011 from the previous year at the same time. The new price is $163,800. Two Reasons for the falling housing prices include increased foreclosure and short sale properties on the market. These distressed properties attribute to 31 percent of the existing home sales in August 2011. In August 2010, it was 34 percent of the existing home sales.

By: John Waters

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