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Half of major metros on track to hit highest home sales since 2007

Statistical evidence continues to confirm that the housing market has entered a phase of robust growth and appreciating values. August single-family home and condominium sales remained on pace for an eight-year record in 110 out of 204 metropolitan areas. Existing home and condo sales rose by 5.4 percent as of August 2015, which is the highest eight-month total since 2007.

Will the Housing Market Slow?

Despite escalating home sales, concerns about the underlying health of the housing market remain. Existing home sales declined in August despite slowing sales of new homes and a positive influx of first-time buyers. Total existing home sales, including town-homes, single family homes and condominiums, declined 4.8 percent to an annual seasonably adjusted rate of 5.31 million.

Signs of Overall Housing Strength

Even with the existing home sales decline, RealtyTrac reports that 58 out of 204 local markets are projected to exceed nine-year highs in total sales. In fact 11 percent of the markets will likely surpass 10-year highs including San Diego, Denver, Naples, Sarasota, Palm Bay, Grand Rapids and Reno. Another 100 markets are looking to surpass eight-year highs in home sales including Los Angeles, Denver, Dallas, Phoenix, Riverside, San Bernardino, Detroit, Tampa, Seattle, Portland and Minneapolis.

Healthy Balance of Financing Options

The overall stability of the housing market is demonstrated by the variety of financing options buyers are using to purchase properties. All cash sales accounted for 24.5 percent of single family and condo sales in August, which represents a 2.2 percent decline from August 2014. The number of buyers using Federal Housing Administration (FHA) loans continued to rise in August and now represents 23.1 percent of all condo and single family home purchases, which is up from 17.8 percent in August 2014.