Property data indicates the homes sales rate increased for the 13th consecutive month in July, which could be an indicator that the market's recovery is truly under way.
The transaction rate surged 10 percent last month from a year earlier, according to a report from RE/MAX. This was accompanied by a 3.7 percent increase in median home prices, which reached $169,000. Of the 53 metro areas monitored by the company, 44 experienced gains in both areas.
Although the housing market continues to outperform expectations on an annual basis, the report noted that the sales rate in July was actually a 9 percent decrease from a month earlier.
"It's reassuring that both sales and prices continue to rise higher on a yearly basis, indicating that this housing recovery is real," said RE/MAX chief executive officer Margaret Kelly.
A thinning property inventory is believed to have contributed to the changes, the report said. This has ramped up competition between buyers, driving prices higher, and the average time homes spent on the market was one week shorter than July 2011.