Real estate sales soar, but real estate inventory declines

MICHIGAN – U.S. real estate sales surged by a seasonally adjusted annual rate of 5.5% in July and were the best monthly increase in five years, according to data released by the National Association of Realtors.

The national average for the year was 5.2%.

The July increase was the highest since August 2014 and the largest since October 2015.

The data released Wednesday from NAR shows a 12.5-month average gain of 2.9% in real estate prices and a 0.6% drop in inventory, the second consecutive monthly gain.NAR, which tracks more than 2,000 real estate agents and brokers nationwide, said July was the best month since July 2012 when sales were at their best in eight years.

July sales rose to an average of 1,828,900 units, or an average price of $1,958 per square foot, from 1,788,900 in June.

The average sales price of homes in July was $1.939 million, up 5.4% from June.

The nationwide average for inventory fell 2.6%, to 8,902,500 units, down from 10,051,500 in June, according the NAR.

The annual pace of inventory growth was 2.4%, up from 2.2% a year earlier.

Inventory is considered a measure of a home’s ability to sell if a seller doesn’t receive a sale offer.