US home sales jump to highest since May 2010

WASHINGTON (AP) — A jump in sales of previously occupied homes and further gains in home construction suggest the U.S. housing recovery is gaining momentum. Sales of previously occupied homes rose 7.8 percent in August from July to a seasonally adjusted annual rate of 4.82 million, the National Association of Realtors said Wednesday. That’s the highest level since May 2010, when sales were aided by a federal home-buying tax credit.

At the same time, builders broke ground on 2.3 percent more homes and apartments in August than July. The Commerce Department said the annual rate of construction rose to a seasonally adjusted 750,000. The increase was driven the best rate of single-family home construction since April 2010.

The pair of reports comes amid other signs of steady progress in the housing market after years of stagnation. New-home sales are up, builder confidence is at its highest level in more than six years and increases in home prices appear to be sustainable.

‘‘The U.S. housing recovery is for real,’’ said Sal Guatieri, an economist at BMO Capital Markets, in a note to clients. ‘‘Great affordability, pent-up demand and strong investor interest in rental units are driving the market.’’

The broader economy is also likely to benefit. When home prices rise, Americans typically feel wealthier and spend more. Consumer spending drives 70 percent of the economic growth.

And the Federal Reserve’s plan to spend $40 billion a month on mortgage-backed securities to keep mortgage rates low ‘‘can only help,’’ Guatieri added.

 Still, home sales and housing starts are rising from depressed levels. Sales of previously occupied homes remain below the more than 5.5 million that economists consider consistent with a healthy market.

The number of first-time homebuyers, who are critical to a housing rebound, slipped to 31 percent from 34 percent. In a typical market, that figure is usually closer to 40 percent. Strict credit standards are making it harder for many first-time buyers to qualify for mortgages.

More Americans appear to be taking advantage of near-record low mortgage rates and prices that are, on average, much lower than they were six years ago.

Sales might be higher if more homes were available, the Realtors’ group said. The limited supply is helping to lift prices. There were 2.47 million homes available for sale in August. It would take just over six months to exhaust that supply at the current sales pace. That’s the typical pace in a healthy market.

Homes are selling more quickly than a year ago. The median amount of time that a home spent on the market was 70 days in August, the Realtors’ group said. A year ago, the median timeframe was 92 days a year ago.

The median home price dipped in August to $187,400, but that is 9.5 percent higher than August 2011. That’s the largest year-over-year price increase since January 2006.

One reason for the price gain is that sales of foreclosed homes and so-called short sales have declined. A short sale is when the seller owes more on the mortgage than the home is worth. Both foreclosure and short sales occur at steep discounts and can drag down overall home prices.

The lower supply of homes has boosted demand for new homes, which has made builders more confident in future sales.

 Applications for building permits, a good sign of future construction, dipped in August to an annual rate of 803,000. Still, permits reached a four-year high of 811,000 in July, which was revised higher.

 ‘‘Since builders are not taking out permits because it is fun to visit their local government office and pay fees, we can conclude that there should be a solid rise in construction in the months to come,’’ said Joel Naroff, chief economist for Naroff Economics Advisors.

Jim O'Sullivan, chief U.S. economist at High Frequency Economics, said home construction should add about 0.3 percentage point to overall economic growth this year.

‘‘Housing is clearly in recovery mode,’’ Sullivan said.

Source: By CHRISTOPHER S. RUGABER

,  AP Economics Writers  / September 19, 2012

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Updated list of the Top 28 grants and rebates for property buyers and owners

Top 28 grants and rebates for property buyers and owners....

1. Home Buyers’ Plan

Qualifying home buyers can withdraw up to $25,000 (couples can withdraw up to $50,000) from their RRSPs for a down payment. Home buyers who have repaid their RRSP may be eligible to use the program a second time.

Canada Revenue Agency www.cra.gc.ca Enter ‘Home Buyers’ Plan’ in the search box.

1.800.959.8287

2. GST Rebate on New Homes

New home buyers can apply for a rebate of the federal portion of the HST (the 5% GST) if the purchase price is less than $350,000. The rebate is up to 36% of the GST to a maximum rebate of $6,300. There is a proportional GST rebate for new homes costing between $350,000 and $450,000.

Canada Revenue Agency www.cra.gc.ca Enter ‘RC4028’ in the search box.

1.800.959.8287

3. BC New Housing Rebate (HST)

Buyers of new or substantially renovated homes priced up to $850,000 are eligible for a provincial enhanced New Housing Rebate of 71.43% of the provincial portions (7%) of the 12% HST paid to a maximum rebate of $42,500. Home priced at $850,000+ are eligible for a flat rebate of $42,500.

www.hstinbc.ca

1.800.959.8287

4. BC New Housing Rebate (HST) for Secondary Vacation or Recreational Homes

Buyers of new or substantially renovated secondary or recreational homes outside the Greater Vancouver and Capital Regional Districts priced up to $850,000 are eligible for a provincial enhanced New Housing Rebate of 71.43% of the provincial portions (7%) of the 12% HST paid to a maximum rebate of $42,500. Home priced at $850,000+ are eligible for a flat rebate of $42,500.

www.hstinbc.ca/buying_goods/buying_a_home/new_home_tax_calculator

1.800.959.8287

5. BC New Rental Housing Rebate (HST)

Landlords buying new or substantially renovated homes are eligible for a rebate of 71.43% of the provincial portion of the HST, up to $42,500.

www.hstinbc.ca/buying_goods/buying_a_home/new_home_tax_calculator

1.800.959.8287

6. BC First-Time New Home Buyers’ Bonus

First-time new home buyers may be eligible a one-time grant equal to 5% of the purchase price of the home, or if you are building a home, 5% of the land and constriction costs, up to $10,000. The bonus is based on the net income of the home buyer. This program ends March 31, 2013.

www.sbr.gov.bc.ca/documents_library/notices/FTHB_Bonus.pdf

1.877.387.3332

7. BC Property Transfer Tax (PTT) First-Time Home Buyers’ Program

Qualifying first-time buyers may be exempt from paying the PTT of 1% on the first $200,000 and 2% on the remainder of the purchase price of a home priced up to $425,000. There is a proportional exemption for homes priced up to $450,000.

BC Ministry of Small Business and Revenue

www.sbr.gov.bc.ca/business/Property_Taxes/Property_Transfer_Tax/ptt.htm

250.387.0604

8 First-Time Home Buyers’ Tax Credit (HBTC)

This federal non-refundable income tax credit is for qualifying buyers of detached, attached, apartment condominiums, mobile homes or shares in a cooperative housing corporation. The calculation: multiply the lowest personal income tax rate for the year (15% in 2011) x $5,000. For the 2011 tax year, the maximum credit is $750.

Canada Revenue Agency

www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncmtx/rtrn/cmpltng/ddctns/lns360-390/369/menu-eng.html

1.800.959.8281

9 BC Home Owner Grant

Reduces property taxes for home owners with an assessed value of up to $1,285,000. The basic grant gives home owners

• a maximum reduction of $570 in property taxes on principal residences in the Capital, Greater Vancouver and Fraser Valley regional districts;

• an additional grant of $770 to rural homeowners elsewhere in the province; and

• an additional grant of $275 to seniors aged 65+, those who are permanently disabled and war veterans of certain wars.

BC Ministry of Small Business and Revenue www.rev.gov.bc.ca/hog or contact your municipal tax office.

10. BC Property Tax Deferment Programs

Property Tax Deferment Program for Seniors. Qualifying home owners aged 55+ may be eligible to defer property taxes.

Financial Hardship Property Tax Deferment Program. Qualifying low-income home owners may be eligible to defer property taxes.

Property Tax Deferment Program for Families with Children. Qualifying low income home owners who financially support children under age 18 may be eligible to defer property taxes

BC Ministry of Small Business and Revenue

www.sbr.gov.bc.ca/individuals/Property_Taxes/Property_Tax_Deferment/ptd.htm

11. Canada Mortgage and Housing (CMHC)

Residential Rehabilitation Assistance Program (RRAP) Grants. This federal program provides financial aid to qualifying low-income home owners to repair substandard housing. Eligible repairs include heating, structural, electrical, plumbing and fire safety. Grants are available for seniors, persons with disabilities, owners of rental properties and owners creating secondary and garden suites.

www.cmhc-schl.gc.ca/en/co/prfinas/prfinas_001.cfm

1.800.668.2642 | 604.873.7408

12. Home Adaptations for Independence (HAFI)

A new program jointly sponsored by the provincial and federal governments provides up to $20,000 to help eligible low-income seniors and disabled home owners and landlords to finance modifications to their homes to make then accessible and safer.

BC Housing www.bchousing.org/Options/Home_Renovations

604.646.7055 or toll-free 1.800.407.7757 extension 7055

13. CMHC Mortgage Loan Insurance Premium Refund

Provides home buyers with CMHC mortgage insurance, a 10% premium refund and possible extended amortization without surcharge when buyers purchase an energy efficient mortgage or make energy saving renovations.

www.cmhc.ca/en/co/moloin/moloin_008.cfm#reno

604.731.5733

14. Energy Saving Mortgages

Financial institutions offer a range of mortgages to home buyers and owners who make their homes more energy efficient. For example, home owners who have a home energy audit within 90 days of receiving an RBC Energy Saver™ Mortgage, may qualify for a rebate of $300 to their RBC account.

www.rbcroyalbank.com/products/mortgages/energy-saver-mortgage.html

1.800.769.2511

15. Low Interest Renovation Loans

Financial institutions offer ‘green’ loans for home owners making energy efficient upgrades. Vancity’s Bright Ideas personal loan offers home owners up to $20,000 at prime + 1% for up to 10 years for ‘green’ renovations. RBC’s Energy Saver loan offers 1% off the interest rate for a fixed rate installment loan over $5,000 or a $100 renovation on a home energy audit on a fixed rate installment loan over $5,000. For information visit your financial institution.

www.vancity.com/Loans/BrightIdeas and www.rbcroyalbank.com/products/personalloans/energy-saver-loan.html

16. LiveSmart BC: Efficiency Incentive Program

Home owners improving the energy efficiency of their homes may qualify for cash incentives through this provincial program provided in partnership with FortisBC, BC Hydro, and FortisBC. Rebates are for energy efficient products which replace gas and oil furnaces, pumps, water heaters, wood stoves, insulation, windows, doors, skylights and more. The LiveSmart BC program also covers $150 of the cost of a home energy assessment, directly to the service provider.

www.livesmartbc.ca/rebates

1.866.430.8765

17. BC Residential Energy Credit

Home owners and residential landlords buying heating fuel receive a BC government point-of-sale rebate on utility bills equal to the provincial component of the HST.

www.sbr.gov.bc.ca/business/consumer_taxes/residential_energy/residential_energy.htm

1.877.388.4440

18. BC Hydro Appliance Rebates

Mail-in rebates for purchasers of ENERGY STAR clothes washers, refrigerators, dishwashers, or freezers.

www.bchydro.com/rebates_savings/appliance_rebates.html

1.800.224.9376

19. BC Hydro Fridge Buy-Back Program

This ongoing program rebates BC Hydro customers $30 to turn in spare fridges in working condition.

www.bchydro.com/rebates_savings/fridge_buy_back.html

604.881.4357

20. BC Hydro Windows Rebate Program

ay no HST when you buy ENERGY STAR high performance windows and doors.

www.bchydro.com/rebates_savings/windows_offers/current_offers.htm

604.759.2759 for a free in-home estimate.

21. BC Hydro Mail-in Rebates/Savings Coupons

To save energy, BC Hydro offers rebates including 10% off an ENERGY STAR cordless phone. Check for new offers and for deadlines.

www.bchydro.com/rebates_savings/coupons.html

1.800.224.9376

22. FortisBC Rebate Program

A range of rebates for home owners include a $50 rebate for upgrading a hot water tank, $300 rebate on an Ener-Choice fireplace and a $1,000 rebate for switching to natural gas (from oil or propane) and installing an ENERGY STAR heating system.

www.fortisbc.com/NaturalGas/Homes/Offers/Pages/default.aspx

1.888.224.2710

23. FortisBC Efficient Boiler Program

For commercial buildings, provides a cash rebate of up to 75% of the purchase price of an energy efficient boiler, for new construction or retrofits.

www.fortisbc.com/NaturalGas/Business/Offers/Pages/default.aspx

1.888.477.0777

24. City of Vancouver Rain Barrel Subsidy Program

The City of Vancouver provides a subsidy of 50% of the cost of a rain barrel for Vancouver residents. With the subsidy, the rain barrel costs $75. Buy your rain barrel at the Transfer Station at 377 W. North Kent Ave., Vancouver, BC. Limit of two per resident. Bring proof of residency.

http://vancouver.ca/engsvcs/watersewers/water/conservation/programs/rainbarrel.htm

604.736.2250

Other municipalities have similar offers.

25. City of Vancouver Greenest City 2020 Pilot Home Energy Loan Program

The City of Vancouver in cooperation with Vancity, FortisBC, BC Hydro and Natural Resources Canada offers access to loans for energy retrofits including heating systems, insulation and air sealing. The Home Energy Loan from Vancity is a 12 month pilot program that will end October 21, 2012. For more information attend a workshop (see third link below). The goal is 500 homes and loans are offered at 4.5% fixed rate over 10 years. The program also helps with accessing grants from the federal ecoENERGY program, the provincial LiveSmart BC program and FortisBC

www.vancouver.ca/energyloan and www.vancity.com/Loans/homeenergy and http://energyloan.eventbrite.com

Email: energyloan@vancouver.ca

604.374.0507

26. Vancity Green Building Grant

In partnership with the Real Estate Foundation of BC, Vancity provides grants up to $50,000 each to qualifying charities, not-for-profit organizations and co-operatives for projects which focus on building renovations/retrofits, regulatory changes that advance green building development, and education to increase the use of practical green building strategies. The deadline for applications was January 23, 2012. If you are still interested in this grant open the link, and consider contacting Vancity to express your interest.

www.vancity.com/MyCommunity/NotForProfit/Grants/ActingOnClimateChange/GreenBuildingGrant

604.877.7000

27. Local Government Water Conservation Incentives

Your municipality may provide grants and incentives to residents to help save water. For example, the City of Coquitlam offers residents a $100 rebate and the City of North Vancouver, District of North Vancouver, and District of West Vancouver offer a $50 rebate when residents install a low-flush toilet. Visit your municipality’s website and enter ‘toilet rebate’ to see if there is a program.

28. Local Government Water Meter Programs

Your municipality may provide a program for voluntary water metering, so that you pay only for the amount of water that you use. Delta, Richmond and Surrey have programs and other municipalities may soon follow. Visit your municipality’s website and enter ‘water meter’ to find out if there is a program.

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Your REALTOR joke of the week

Thank you,

Roland Kym

2011 Medallion Club  Member ~ Re/max Executive Club & 100% Club Member

Remax Select  Properties

Cell : 604 970-0393

Office: 604-737-8865

Fax :  604-737-8512

www.rightpricedrealty.com

www.facebook.com/RolandKymRealtor  

www.twitter.com/RPRVancouver

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I just finished handing over the keys to a happy buyer on this apartment

Thank you Plush Floral Studio for making another great Gift basket for the occasion, Bernadette loved it!

Bernadette was even more happy as after some last minute negotiations with the seller before subject removal we were able to get this apartment for $320,000... a great deal!

This is a fantastic, quiet corner end unit with a huge patio and lush garden like a townhouse, very well kept building with proactive strata management. The spacious floor plan allows for full size dining table with 6 chairs, full set of big size sofa, large master bedroom with WI closet and cheater ensuite. Updated kitchen with newer stainless steel appliances. Great location close to Granville shopping, cafes and restaurants. 1 parking, storage locker and bicycle room, Rental not allowed 

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“A bubble isn’t just defined by high prices,”

Sagging home sales and flat ­prices have prompted speculation that the “housing bubble” might be about to burst — a prospect that immediately catches the attention of British Columbians.

But there is no housing bubble, according to Tsur Somerville, director of the University of B.C.’s Centre for Urban Economics in the Sauder School of Business.

“You can’t burst a bubble that wasn’t there,” said Somerville. “But you can have prices above where they should be and it not be a ­bubble.

“A bubble isn’t just defined by high prices,” he said.

Somerville identified a housing “bubble” as conditions akin to what was happening in 2007.

“It didn’t matter what the condo looked like or what it’s going to look like or who was building it, people were lined up around the block and snapping it up,” he said. “They were saying, ‘I’ll take 12, please.’ That’s more of a bubble environment.”

While it might not be a bursting bubble, what is going on in the Vancouver area right now is not exactly normal, either.

Greater Vancouver home sales in August were the second lowest since 1998 and represented a drop of 30.7 per cent compared to August of last year, and were 21.4 per cent lower than in July of this year.

The 1,649 sales of detached, attached and apartment homes were also 39.2 per cent below the 10-year August average of 2,711.

But prices were relatively flat. The Real Estate Board of Greater Vancouver composite benchmark of $609,500 for residential properties in August was down only 1.1 per cent from July, and just 0.5 per cent down from this time last year — despite 2011 being a busy year for high-end property sales.

If there was a large number of unsold units coming onto the market or a huge change in the economic environment, Somerville said, “that would really cause prices to tank.”

“Most people don’t have to sell their house,” he said. “You bought it for $200,000. The price is now $150,000. Unless you have to, why would you sell it?”

For prices to go down ­significantly, contended Somerville, “You need people who have to sell, either because the economy has collapsed and they don’t have any income or developers have built a whole bunch of units that are unsold and the bank is screaming at them or foreclosing or something like that.”

None of those conditions appears imminent.

Somerville said it would take “some negative shock,” such as an ­economic meltdown or mortgage interest rates jumping from four per cent to nine or 10 per cent, to trigger lower prices.

“The euro melting down would cause one of those [shocks],” he said. “If the Canadian government changes its immigration policy and slammed the door on wealthy Asian immigrants, that would affect ­[prices].

“I don’t have a crystal ball but if I had to guess I would be more likely to guess this kind of lower sales/flat prices is more likely to continue.”

The B.C. Real Estate Association is more optimistic. Chief economist Cameron Muir is predicting increased sales in 2013 because of continuing low interest rates, population growth and more full-time jobs.

Employment growth in the ­Greater Vancouver area in the first ­seven months of the year, according to Muir, has been 3.5 to 4 per cent ­higher than the same period last year.

“I would expect to see sales pick up before the end of the year, at least on a seasonally adjusted basis,” Muir said.

Adding to his optimism is increased consumer demand for housing in the Okanagan and in B.C.’s North, where resource extraction continues but where there has also been more economic diversification.

The BCREA is forecasting Multiple Listing Service sales to go down by four per cent this year compared to last year but to go up by 7.5 per cent in 2013.

SOURCE: © Copyright (c) The Province

 

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Great information to protect home owners by the HPO

In BC, the Homeowner Protection Office (HPO) is a provincial government agency that helps protect home buyers by:
• overseeing compliance with the Homeowner Protection Act and
the Homeowner Protection Regulation;
• licensing residential builders;
• administering owner-builder authorizations;
• providing new home warranty information; and
• offering resources such as a New Homes Registry database.

The Act, HPO and new homes

The Homeowner Protection Act requires all new homes built in BC to be built by a licensed residential builder and covered by home warranty insurance or have an approved exemption. Before a new and never occupied home can be legally offered for sale, a developer (owner) must be a licensed residential builder.

Owner-builders may qualify for an exemption from the mandatory residential builder licensing and home warranty insurance by being granted an Owner-Builder Authorization (OBA) by the HPO. To be granted this exemption, the owner-builder must:
• be an individual and personally own the land and be the builder of the home (either directly or act as the general
contractor);
• own and occupy the home for at least 12 months after receiving a final occupancy permit or is granted an exemption by the
HPO, for example, due to death or divorce; or
• provide an Owner-Builder Disclosure Notice, obtained through the HPO, to all potential buyers. Note: for 10 years after the
occupancy permit is issued, all subsequent owners must also provide the Owner-Builder Disclosure Notice to potential
buyers before they enter into an Agreement of Purchase and Sale.

Check the New Homes Registry

Before listing a home, REALTORS® should perform due diligence by asking the builder or the owner:
• Is the home currently under construction? Is it being built by a licensed residential builder?
• Is the home new and has never been occupied? Was it built by a licensed residential builder or by an owner-builder?
• Does the home have warranty insurance?
• Is the home less than 10 years old?
• Is the home more than 10 years old?

Homes registered with the HPO between July 1,1999 and November 19, 2007 to the present

This data is not in the registry. However, owner-builders who built their home before November 19, 2007 must provide prospective buyers with an Owner-Builder Declaration and Disclosure Notice within the first 10 years after occupancy. Contact the HPO at 1.800.407.7757 for advice and guidance.

Check the Public Registry of Residential Builders

This registry shows if an individual or company has a valid HPO licence and any other information about the licensee. The registry is available at: www.hpo.bc.ca/public-registry-residential-builders

HPO

Homeowner Protection Act and Regulations: www.hpo.bc.ca/acts-regulations
New Homes Registry: www.hpo.bc.ca/public-registry-residential-builders
Public Registry of Residential Builders: www.hpo.bc.ca/public-registry-residential-builders
HPO online portal for licensed residential builders: https://lims.hpo.bc.ca/LIMSPortal/LRBPortal/
Regulatory guides: www.hpo.bc.ca/regulatory-bulletins
Resources for homeowners: www.hpo.bc.ca/homeowners
Resources for home buyers: www.hpo.bc.ca/homebuyers
Videos: www.hpo.bc.ca/homeowners#maintenance
Webinar workshops:

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Thank you for a great testimonial!

My wife and I had recently had the distinct pleasure of working through the home-buying process with Roland Kym of REMAX. I had known Roland for more than 2 years before I had the opportunity to work with him, and I already knew him as a professional, hard-working and knowledgeable realtor whose focus on his client’s best interests was paramount. As both of us were new to real-estate ownership, we greatly appreciated Roland’s systematic approach to home-buying, which made a complex process much easier to understand. Everything was laid out in step-by-step order so that we knew exactly what to expect at each stage and there were no surprises. We bought the home that we wanted for less than it was listed against competing bids which is a testament to Roland’s understanding of his business and his negotiating ability. I trust Roland and admire his professionalism and values enough to have referred close friends to him already and I would not hesitate to do so again. It is no surprise to me that he is among the top realtors in Vancouver as his innovative, warm and thoughtful approach to working with his clients made what could have been a very stressful time in our lives easy to deal with. I highly recommend anyone who is thinking of buying or selling a home to meet Roland and see for themselves.

Kevin & Stephanie

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2012 Referral Contest

2012-ReferralContest-for-web.pdf Download this file

 Enter by November 15th, 2012 for the chance to win from dozens of prizes!

 

This contest is open to everyone and does not require a purchase.

 

This is an opportunity for anyone and everyone to refer thier friends, family and collegues that might be interested in talking about their current or future Real Estate Goals.

 

Anyone who submits a lead, referral or introduces us to someone who has a real estate need will receive an entry. At our annual client appreciation party, we will draw from all the entries and award dozens of prizes, icluding $1000 cash, hockey tickets, gift cards, etc.

Posted via email from rightpricedrealty's posterous

Do you need to increase your living area?

Are you looking at a  property and need that extra bathroom or additional living space?

When purchasing an older home in Vancouver the majority of times the need for additional space is increasing. Typically most homes may have “maxed out” what they may be allowed for FSR. Floor Space Ratio.

When doing renovations or up grades typically most cities will have maximum allowable floor space ratio formula. What this means is that typically you are allowed a certain percentage size of home in relation to the size of the lot.

In Vancouver usually this is 60 % , so lets take an average lot size of 33ft by 122 ft. The lot size is 4026 sq ft @ 60% you are allowed to build a home 2415 sq ft in size. All measurements are taken from extremities of the home and not internal measurements

This is fairly limited especially if you have a basement suite and the attic area that has been developed.

Did you know that the FSR can usually be increased to 70% by applying for a Development permit . There is certain criteria that has to be meet, such as incorporating some design features from adjacent homes site coverage etc.

This now changes things dramatically. That 2415 sq ft home can now be increased to 2818 sq ft. That’s a 20x 20ft addition. This now may allow for that additional bathroom on the upper level or additional bedroom.

For more details visit the help desk at City hall at the building permit section and they can help with all the finer details on what may be allowable.

Suddenly that smaller home that be in your budget or area of desire to purchase is looking more attractive.

When using AusCan Home Inspections these are typically some of the value added tips, amongst numerous others, that are passed along to my clients . I use my 20 year experience in the building industry to aid my clients in any way I can.

Darryl Bailey.

Licensed Home Inspector ,RHI

AuscanHome Inspections.

www.auscanhomeinspections.com

email:auscanhomeinspections@gmail.com

604-671-5528

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US: Home sales climb 2.3% in July

NEW YORK (CNNMoney) -- Americans seem to be stepping up their homebuying while they can still find bargains.

July home sales rose 2.3% from June, and 10.4% from a year earlier, to an annual rate of 4.47 million, according to a report from the National Association of Realtors. 

The market has been bolstered by low home prices and mortgage rates, according to Lawrence Yun, NAR's chief economist, but the inability of some potential buyers to obtain financing has cut into sales.

"The market is constrained by tight lending standards and shrinking inventory supplies, so housing could easily be much stronger without these frictions," he said.

July sales were slightly below forecasts from a panel of industry experts put together by Briefing.com, which had predicted sales of 4.57 million.

Related: Best Places to Live where homes are affordable.

Stuart Hoffman, chief economist for PNC Financial, said the psychology of the market has turned. With mortgage rates coming up off of historic lows and home prices on the rise, homebuyers are more likely to think that housing will get more expensive, making them more inclined to buy.

NAR reported a rise in median home price of 9.6% in July, compared with a year earlier, to $187,300. Listing inventory has fallen to a 6.5 month supply, down 24% from a year ago.

 

Source: CNN Money

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