Existing-home sales rose to their highest level in nearly two years from June to July as cheaper prices and the availability of tax credits continued to entice buyers.
Home resales rose more than expected, bouncing 7.2% -- the highest month-over-month percentage increase in more than a decade -- to a seasonally adjusted 5.24 million annual rate, the National Association of Realtors said Friday.
Analysts surveyed had expected an annual sales rate of 5 million.
Foreclosures and short sales reflect 31% of sales in July. Distressed property sales have pushed prices lower, year over year, attracting buyers not sidelined by unemployment or tight credit conditions.
The median price for an existing home last month was $178,400, a 15.1% decrease from July 2008.
Previously owned home sales, year-over-year, were up 5.0% from the pace in July 2008, the NAR report said.
Weak demand has kept inventories of unsold homes high, driving down prices. Inventories of previously owned homes climbed 7.3% at the end of July to 4.09 million available for sale.
That inventory level represents a 9.4-month supply at the current sales pace, compared to 9.4 months in June.
Regionally, July sales rose 13.4% in the Northeast, 7.1% in the South and 10.9% in the Midwest. July sales slid 1.7% in the West.
