US home sales up in August

The National Association of Realtors (NAR) has revealed that sales of existing homes in the US increased during August compared to the previous month and the same time a year earlier.

According to the organisation's figures, there were 5.03 million transactions completed last month, with 4.67 million recorded in July. This represents an 18.6 per cent jump on August in 2010, it added.

Meanwhile, investors accounted for almost one quarter of sales activity in the US residential real estate sector last month, up from 18 per cent in July.

Lawrence Yun, NAR chief economist, commented: "Investors were more active in absorbing foreclosed properties. In addition to bargain hunting, some investors are in the market to hedge against higher inflation."

However, the association warned that restrictions on mortgage availability continue to hold back the recovery of the housing market, despite improvements being noted.

Earlier this week, the US Department of Commerce published data showing that housing starts in the nation were down by 5.8 per cent in August on an annual basis.
 

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