Home Sales Jumped a Record 24.7 Percent in July

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Existing home sales surged 24.7 percent in July, according to the National Association of Realtors.

Existing home sales surged 24.7 percent in July, according to the National Association of Realtors.

This became the largest monthly gain in history, with records dating back to 1968, according to CNBC.

Sales were 8.7 percent higher than in July 2019. This data represents sales from May and June when contracts were signed. The increase in housing prices is attributed to falling supply and low mortgage rates. Homes listed for sale fell 21.1 annually in July. Only 1.5 million homes were on the market. “The new listings are running a little higher than one year ago but all those new listings are being grabbed by the buyers and taken off the market,” said Lawrence Yun, chief economist for the Realtors.

In July, the median price of a home was up to $304, 100. This is a record high for nominal price, but also the highest inflation-adjusted price. It is 3.4 percent higher than the bubble record from 2006 when mortgage lending was lenient and could be secured with no down payment and little financial documentation.

“I think there is a big societal change concerning housing decisions today,” said Yun. “The upper income bracket has been more stable in terms of jobs, and they are taking advantage of record low mortgage rates.”

The average rate for a 30-year fixed mortgage fell below 3 percent in July. “Continued healing in the housing market is a positive for the overall economy, but elevated jobless claims raise concerns about how sustainable this housing demand is, especially in the face of rising prices,” said Danielle Hale, chief economist for realtor.com.

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