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IRVINE, CA-While home sales volume continued to increase nationwide, eight states posted annual decreases in total sales, including Western states California and Nevada, reports locally based supplier of foreclosure and real estate data RealtyTrac. California's total sales fell 17% and Nevada's 7% from a year ago, according to the firm.

As GlobeSt.com reported earlier today, cash purchases jumped to 40% of all sales in July, and national home sales volume is up 11% from a year ago, although down in California, Nevada, Arizona and Georgia.

“California saw a decrease in sales during the month of July because of the severely limited inventory that existed in April and May,” says Rich Cosner, president of Prudential California Realty, which covers Orange, Riverside and San Bernardino counties. “The overall pace of sales going into escrow has remained steady as buyers are finding it easier to find a home, and inventory in many Southern California markets has doubled.”

In addition, short sales—where the sale price is below the combined total of outstanding mortgages secured by the property—accounted for 14% of all residential sales in July, up from 13% in June and up from 9% in July 2012, RealtyTrac reports. States with the highest percentage of short sales in July included Nevada, Florida, Maryland, Washington and Tennessee.

According to Craig King, COO of Chase International, which covers the Reno and Lake Tahoe markets, “The increase in completed short sales in July is a result of the frenzied buying pace during the first few months of the year when the seasonal activity increased tremendously. With almost 40% of homeowners in the Reno-Sparks area still underwater on their mortgages, we should continue to see some short sales, but overall the number of new short sales coming on the market is declining as we return to a normalizing marketplace and a return of equity sales.”

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