The pace of U.S. previously owned homes rose 3.1% in July to an annual rate of 5 million homes as the median price fell $16,200 (7%) on a year-over-year basis, but remains 13% below the pace of 2007.
The increase in sales wasn’t enough to keep up with the surge in properties coming into the market as foreclosures mount. There were a record 4.67 million unsold houses and condos on the market in July, representing 11.2 month’s supply at the current sales pace, matching the highest ever. The [National Association of Realtors] has said a five to six months’ supply is consistent with a stable market.
The jump in inventory was driven by an increase in the supply of condos as projects started one or two years ago came on the market, the Realtors group said.