Existing-home sales increased in July, while low inventory levels and rising prices are the largest factors lowering sales to first-time buyers to their lowest share since January, according to a report from the National Association of Realtors released Thursday.
Total existing-home sales rose 2 percent to a seasonally adjusted annual rate of 5.59 million in July from a downwardly revised 5.48 million in June. July sales were at the highest pace since 5.79 million in February 2007. The report also found that single-family home sales increased 2.7 percent to a seasonally adjusted annual rate of 4.96 million in July to their highest level since 5.08 million in February 2007.
Many believe that the Baby Boomer generation have begun downsizing from their single-family homes to live in apartments. A recent housing insights report from Fannie Mae's Economic & Strategic Research Group challenges this idea, finding that Baby Boomers are not fleeing to apartments but remaining in their homes. The report found that available data through 2013 showed no significant reduction in the rate at which Baby Boomers occupy single-family detached homes.