U.S. Homes Sales Hit Eight-Year High

Home sales in the U.S. are on track to hit their highest level since 2007, according to a new report. Total house sales rose 5.4% through August from the same period in 2014. The total number of units sold—1,947,028—is the highest for the first eight months of the year since 2007. The figures, released today by RealtyTrac, are a sign that the recent turmoil in the global stock market hasn’t made a dent in the housing recovery in the U.S. “In fact, there is evidence that the instability has fueled more demand for U.S. real estate,” said Daren Blomquist, vice president of the data provider firm, in a statement. All-cash sales accounted for 24.5% of all single-family and condo deals in August. The share, while still well below a peak of 39.6% in February 2013, is up from a seven-year low of 23.6% in July. Markets that have traditionally attracted foreign homebuyers—such as Miami, San Francisco and New York—showed the more pronounced month-over-month increases in cash sales. More than half of all deals involving international buyers were all-cash, according to a report by the National Association of Realtors. All-cash are those in which no loan was recorded. International buyers, particularly from China, continue to play a significant role in the Southern California market. “We are seeing more globalization as Southern California has become a destination of international buyers,” said Los Angeles-based Mark Hughes, chief operating officer with First Team Real Estate, in a statement. “International buyers are driving homes prices up and sometimes out of reach for many local residents.” Hughes added that 80% of new construction in Irvine, Calif., last year was sold to Chinese buyers. Chinese became the number one source of foreign buyers in the U.S. last year, surpassing Canadians for the first time. Chinese purchases accounted for approximately 28% of all international sales in dollar volume, with about 35% of reported purchases made in California, according to NAR. Read full report here. Write to Andrea López Cruzado at andrea.lopez@dowjones.com Follow Mansion Global on Facebook, Twitter and Instagram Write to us at info@mansionglobal.com