Sales of previously owned homes hit a five-month high in August, according to data from The National Association of Realtors. Existing-home sales spiked 7.7 percent to an annual rate of 5.03 million units, exceeding economists' expectations. Total sales, including single-family, townhomes, condominiums, and co-ops, were 18.6 percent higher than they were in August of last year. Single-family home sales were 20.2 percent above last year's pace. Ron Phipps, NAR's president, said the relationship between home prices, mortgage rates, and family income has been hovering at historic highs all year creating the best housing affordability conditions in a generation. The national median existing-home price for all housing types was $168,300. Total housing inventory fell 3.0 percent in August to 3.58 million homes available for sale, an 8.5 month supply at the current sales pace. More here and here.