In some areas, supply is still so short that there is overbidding; 17% of all homes sold above the asking price in August, although 63% sold below list price.
The median time on market for all homes was just 43 days in August, little changed from 42 days in July.
The national median price for existing homes was $212,100 in August, up 14.7% from August 2012. This is the strongest year-over-year price gain since October 2005.
Some of the price increases can be explained by the shifting mix of homes. The share of distressed homes -- foreclosures and short sales -- represented just 12% of total sales, down from 23% in August 2012.Still, a number of transactions are paid by cash, reflecting tight mortgage conditions and high demand from investors. All-cash sales comprised 32% of transactions in August, up from 31% in July and 27% in August 2012. Three out of four investors paid cash. First-time homebuyers accounted for about 28% of purchases, down from 31% a year ago. In the coming months, inventory is expected to continue expanding, which would be good news for buyers. However, if interest rates continue to rise, buyers might stay away from the market and prices could moderate. >Contact by Email. Follow @shavenk
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