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Other figures in the report were mixed. "Distressed" sales, which include foreclosures and homes with mortgages that exceed the home values, made up just 12 percent of sales. That was down from 23 percent a year earlier. That means that traditional sales have risen 31 percent in the past year, said Paul Diggle, an economist at Capital Economics. At the same time, potential homebuyers, particularly first-time purchasers, still appear to have difficulty qualifying for loans. All-cash sales accounted for 32 percent of purchases, up from 27 percent a year ago. First-time buyers made up only 28 percent of sales, down from 31 percent a year earlier. First-time buyers usually propel housing recoveries. But in recent years, they've struggled to meet higher credit standards. Many lenders also now require higher down payments. The supply of available homes remains tight, the Realtors' group said. There were 2.25 million homes for sale last month, down 6 percent from a year earlier. Rising prices could encourage developers to build more homes. Last month, builders broke ground on the most single-family homes since February and sought the most permits to build those homes in more than five years. Homebuilder confidence remained at its highest level in nearly eight years in September, according to a survey by the National Association of Home Builders. But builders are starting to worry that sales may slow in coming months if rates keep rising, the survey found.
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