Home sales surge in July as supply finally opens up a bit

As more properties came on the market, the median price held steady from a month earlier, though it was up nearly 26 percent from a year earlier (almost 29 percent in L.A. County). These Dataquick numbers suggest a stabilizing market that could make life a little easier for potential buyers who have been outbid on homes selling for well above the asking price. A little context is in order, however: July's median price of $385,000 is still nearly 24 percent below the market peak of $505,000 in 2007. Still, it's up from the low of $249,000 in 2009. From press release:

"July home sales came in very strong, and we think a lot of the increase in activity can be chalked up to a rising inventory of homes for sale. The jump in mortgage rates a couple of months back might have spurred more buying, too. The market continues its rebalancing act, with more and more people who've been 'underwater' now able to sell their homes at a profit, or at least break even. As the mismatch between supply and demand eases, it will be more difficult for home prices to rise as steeply as we've seen over the past year," said John Walsh, DataQuick president.