U.S. existing home sales were up sharply in July, continuing the trend of positive developments for the U.S. housing market.
Sales of existing houses rose 6.5% to a seasonally adjusted rate of 5.39 million in July, the National Association of Realtors (NAR) reported August 21. The numbers are an improvement over June, which saw sales fall 1.2%.
Distressed home sales, which include foreclosures and short sales, made up 15% of existing home sales in July, down from 24% a year earlier.
The NAR noted that mortgage rates are the highest they have been since 2011, which has taken some potential home buyers out of the market.
Analysts predict steady growth to continue for U.S. housing.
The fortunes of B.C.’s forestry sector closely track the movements of the U.S. housing markets. In 2013’s first quarter, lumber prices zoomed to historic heights in an overly optimistic response to signs U.S. housing was recovering, before dropping precipitously throughout the second quarter.
Lumber prices stabilized at the beginning of July and have since increased by a modest amount. Lumber prices currently sit at $354 per board foot, compared with $340 per board foot in July 2012, according to Random Lengths.
