The National Association of Realtors (NAR) reports that the seasonally adjusted annual rate of existing home sales in July rose 2% to a seasonally adjusted annual rate of 5.59 million from a downwardly revised total of 5.48 million in June. The sales rate remained at the highest pace since February 2007.

Existing home sales have increased on a year-over-year basis for 10 consecutive months and are now 10.3% higher than in May 2014.

The consensus estimate called for sales to reach 5.4 million, according to a survey of economists polled by Bloomberg.

Housing inventory decreased by 0.4% in July to 2.24 million homes, which is equal to a supply of 4.8 months, down slightly from a 4.9-month supply in June, but well above the total of 1.88 million homes in inventory at the end of December 2014.

According to the NAR, the national median existing home price for all housing types in July was $234,000, up 5.6% compared with July 2014, the 41st consecutive month of rising home prices.

NAR’s chief economist said:

Despite the strong growth in sales since this spring, declining affordability could begin to slowly dampen demand. Realtors in some markets reported slower foot traffic in July in part because of low inventory and concerns about the continued rise in home prices without commensurate income gains.

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The percentage of first-time buyers dipped to 28% in July, down from 30% in June, the lowest share since January. In July of 2014, first-time buyers accounted for 29% of all sales.

Sales of single-family homes rose 2.7% from June at a seasonally adjusted annual rate of 4.96 million, up 11% compared with July a year ago. Sales of multifamily homes decreased by 3.1% year over year to an annual rate of 630,000 units.

Foreclosed and short sales accounted for 7% of July sales, up from 9% in July 2014. Foreclosures sold at an average 17% discount to the July median price, and short sales sold at a discount of 12%.

All homes were on the market for an average of just 42 days. Foreclosed homes were on the market for an average of 49 days and short sales took a median of 135 days to sell. Non-distressed homes took 41 days to sell, and 43% of homes sold in July were on the market for less than a month.

The NAR also reported the following regional data:

• July existing-home sales in the Northeast dropped 2.8% to an annual rate of 700,000 and are now 9.4% above a year ago. The median price in the Northeast was $277,200, which is 1.3% higher than July 2014.
• In the Midwest, existing-home sales were unchanged from an annual rate of 1.32 million in June and are 10.9% above July 2014 sales. The median price in the Midwest was $186,500, up 6.6% from a year ago.
• Existing-home sales in the South increased 4.1% to an annual rate of 2.29 million in July and are now 9.6% above July 2014. The median price in the South was $203,500, up 7% from a year ago.
• Existing-home sales in the West climbed 3.2% to an annual rate of 1.28 million in July and are 11.3% above a year ago. The median price in the West was $327,400, which is 8.2% above July 2014.

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