According to a new report, existing-home sales in the US surged in August after a big correction in July.
The National Association of Realtors (NAR) in the US said sales of existing homes jumped 7.6 percent to a seasonally-adjusted annual rate of 4.13 million in August from an upwardly revised 3.84 million sales in July. But they remain 19 percent below the 5.1 million sales seen in August last year.
Lawrence Yun, chief economist at NAR, said sales of existing homes would remain subdued.
“The housing market is trying to recover on its own power without the home buyer tax credit. Despite very attractive affordability conditions, a housing market recovery will likely be slow and gradual because of lingering economic uncertainty,” he said.
The average house price in the United States now stands at $178,600, an increase of 0.8 percent from the previous year. Distressed home sales climbed 2 percent to 34 percent in August from a month ago, accounting for 31 percent of total sales a year ago.
Mr. Yun said the new figures are proof that the US housing market has been on the road to recovery.