July Existing Home Sales Leap Over 7 Percent

First-time buyers who complete their sales transactions by the end of November can take advantage of a tax credit of 10% of the purchase price, up to $8,000. Much as the auto industry did for "Cash for Clunkers," the real estate industry is lobbying Congress to get the tax credit extended.

The National Association of Realtors said home sales rose 7.2 percent to a seasonally adjusted annual rate of 5.24 million last month, from a pace of 4.89 million in June. This continued a trend, as it's the fourth-straight monthly increase in sales. It's also the highest level of sales since August 2007.

Showing that housing prices have not recovered, however, is the median sales price of these hoems. The median sales price was $178,400, down 15% from $210,100 year-over-year.

While some might look at the foreclosure sales numbers and wince, the numbers are actually good, considering. Sales of foreclosures and other distressed properties were a third of all transactions in July. That is down from figures in which nearly half of monthly sales were foreclosures, earlier this year.

Written by Michael Santo