Existing home sales up from a year ago

The National Association of Realtors recently reported that sales of existing homes increased in the month of August compared to the same time in 2010. The increase is significant because the market is still struggling with tight lending requirements, problems with appraisals and weak consumer confidence.

Total existing-home sales increased 7.7 percent from July, and were up 18.6 percent from the 4.24 million sold in August 2010. Lawrence Yun, NAR chief economist, said many factors may have affected the improvement in sales for August, such as delayed purchases from July or rising rents.

"Investors were more active in absorbing foreclosed properties," Yun said. "In addition to bargain hunting, some investors are in the market to hedge against higher inflation."

The NAR found investors accounted for 22 percent of purchase activity in August, up from 18 percent in July and 21 percent in August 2010. In addition, first-time buyers made up 32 percent of purchases in August, slightly above the 31 percent reported in August 2010.

Greg Rand, a real estate veteran, recently identified trends such as the job market that could help borrowers and homeowners battle through the slow recovery. According to Rand, tracking employment trends can help potential homebuyers see where the next strong market will emerge. The cities in which companies set up shop will be where job growth and economic recovery will take place. 

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