Dive Brief:
- There were fewer home sales in June and July of this year compared to a similar period in 2013—but selling prices are higher now, according to housing data released last week by RealtyTrac.
- While the median price of homes sold in July was up 12% from one year ago, the volume of sales was also down by 12%. The average sales price in July was $191,000, the highest since September 2008.
- One reason for the price growth: Sales of distressed homes—those in foreclosure or owned by the bank—have been on a continual decline, meaning that consumers are purchasing more expensive dwellings and thus boosting the median sales price.
Dive Insight:
The rising median sales price is a bit misleading, says Daren Blomquist, vice president of RealtyTrac, because it “masks” a slowdown in how much home prices are appreciating nationwide. Still, Blomquist views the slowdown as “expected” and says it indicates that “the real estate recovery thus far is behaving rationally.”
Total home sales in July were down 3% on a month-over-month basis to 4,634,513, representing the third consecutive month of decreased home sales on an annualized basis. Strikingly, sales of properties priced at $200,000 or higher made up 51% of home sales in July compared to 48% one year ago.