The National Association of Realtors (NAR) reports that the seasonally adjusted annual rate of existing home sales in August rose 1.7% to 5.48 million from an unrevised total of 5.39 million in July. Sales are up 13.2% year-over-year for the month. The consensus estimate called for sales to reach 5.25 million. August sales are the best they have been since February 2007 when 5.79 million existing homes were sold.

Housing inventory rose again in August, up 0.4% to 2.25 million homes, which is equal to a supply of 4.9 months, down from a five-month supply in July. Listed inventory is down 6.3% year-over-year, when there was a six-month supply available.

According to the NAR, the national median existing home price in August was $212,100, down from $213,500 in July, but up 14.7% compared with August 2012. That marks the 18th consecutive month to see a price gain and the eighth consecutive month of double-digit increases.

NAR’s chief economist said:

Rising mortgage interest rates pushed more buyers to close deals, but monthly sales are likely to be uneven in the months ahead from several market frictions. Tight inventory is limiting choices in many areas, higher mortgage interest rates mean affordability isn’t as favorable as it was, and restrictive mortgage lending standards are keeping some otherwise qualified buyers from completing a purchase.

Foreclosed and short sales accounted for 12% of August sales, down from 15% of July sales, and below the 23% share in August 2012. Foreclosures sold at an average 16% discount to the August median price, while short sales sold at a discount of 12%. Both discounts were unchanged month-over-month.

Existing, non-distressed homes were on the market for an average of 41 days, while foreclosed homes were on the market for an average of 52 days and short sales took a median of 98 days to sell. Time on the market was roughly the same for non-distressed and foreclosed properties, but short sales time on the market jumped by nearly a month.

Even though housing inventory continues to improve, real-estate brokers are not satisfied with the inventory of existing homes they have for sale. Rising mortgage rates also are hurting sales, and the specter of the new mortgage qualifying rules coming into force at the first of next year are not improving their outlook. But the housing market with all its moving parts is doing pretty well, considering the slowly growing U.S. economy.

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