U.S. Existing Home Sales Rise to Pre-Recession Pace

WASHINGTON—The pace of home sales in July climbed to their highest since before the recession, buoyed by strong sales in single-family properties.

The pace of existing home sales increased 2% last month from June to a seasonally adjusted rate of 5.59 million, the National Association of Realtors said Thursday. Last month's sales pace was the highest since February 2007.

Sales for June were slightly revised down to 5.48 million from an initially reported 5.49 million.

Economists surveyed by The Wall Street Journal had expected July sales would dip 0.7% to a pace of 5.45 million.

Tight inventories have driven prices up, keeping some buyers out of the market. Lawrence Yun, NAR's chief economist, noted that first-time buyers declined to 28% of all buyers, the lowest share since January. Rising rents across the country are also eating into the savings that people might put toward a down payment.

"We have to recognize that we have a broad-based housing shortage," said Mr. Yun. "Home builders have been essentially out of the game or underproducing for the past decade."

Mortgage rates are still low by historical standards, but could rise in the fall if the Federal Reserve raises interest rates.

News Corp, owner of The Wall Street Journal, also owns Move Inc., which operates a website and mobile products for the National Association of Realtors.

Write to Anna Louie Sussman at [e-mail] and Eric Morath at [e-mail]

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(END) Dow Jones Newswires

August 20, 2015 10:25 ET (14:25 GMT)

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