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Existing home sales up for 4th consecutive month

Existing home sales climbed in July to their fastest pace this year, providing further evidence that the housing market is bouncing back after a sluggish first half of the year.

Sales rose 2.4 percent to a seasonally adjusted annual rate of 5.15 million and have increased for four consecutive months, the National Association of Realtors said Thursday. The total slightly beat analysts’ estimates, though sales remain 4.3 percent below the year ago level.

NAR chief economist Lawrence Yun attributed the solid sales to growing housing inventories and moderating price increases. Those factors “are giving prospective buyers less hesitation about entering the market,” he said.

The government reported that housing starts also increased sharply last month.

The homes-for-sale inventory rose 3.5 percent to 2.4 million, which represents a 5.5 month supply. A six-month supply is considered balanced.

The housing market also reached a milestone as the stock of distressed homes – including foreclosures and short sales – fell to 9 percent of all sales, the first time they have slipped to single digits since the 2007 housing crash. In 2009, troubled sales represented 36 percent of all sales.

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