Home prices and home sales in 25 metropolitan statistical areas (MSAs) increased 1% and 1.9%, respectively, from July to August, according to Radar Logic‘s Residential Property Index (RPX) housing market report. The average price change from July to August for the past 10 years is 0.1%, but the first-time homebuyer tax credit, which nears expiration, is adding demand in the market, Radar Logic said. The real estate data and statistic firm applied the same explanation to an increase in home sales volume, which for the past 10 years averaged a 2.4% decline between July and August. “Pending sales and mortgage applications for purchase suggest that strength in the RPX could continue for the next few months, though given the expected seasonal decline in activity in the fall, that strength could take the form of a modest price gain or a milder-than-average price decline through the winter,” said Radar Logic president and CEO Michael Feder. “The threat of pending foreclosures to the housing market is, in our view, overstated and we believe there is strong evidence that housing supply and demand are returning to more normal levels,” Feder added. The RPX is a measure of market conditions in 25 MSAs and the Manhattan condo market with emphasis placed on local market conditions. Write to Austin Kilgore.
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