Steep Home Discounts Raise Resales 3.1% in July

Washington, DC, Aug. 25, 2008--Home resales rose 3.1 percent in July from June as buyers were attracted to deeply discounted properties in parts of the country hit hardest by the housing bust, according to the National Association of Realtors.

The NAR said sales rose to a seasonally adjusted annual rate of 5 million units. Sales had been expected to rise only 1.6 percent, to a 4.90 million-unit pace, from the 4.86 rate initially reported for June, which was downwardly revised to 4.85 million.

However, home sales were 13 percent lower than a year ago.

The inventory of homes for sale rose to a record 4.67 million homes or a 11.2 months' supply at the current sales pace, matching a record set in April.

The median price for a home sold in July dropped to $212,000, down 7.1 percent from a year ago.