Existing-home sales slide again in July

Existing-home sales in July declined for the sixth straight month, the National Association of Realtors (NAR reported this morning.

Total existing-home sales slipped 5.9% from June to a seasonally adjusted annual rate of 4.81 million in July. Year-over-year, sales fell 20.2% from 6.03 million in July 2021.

This includes completed transactions of single-family homes, townhomes, condominiums, and co-ops.

"The ongoing sales decline reflects the impact of the mortgage rate peak of 6% in early June," said NAR Chief Economist Lawrence Yun. "Home sales may soon stabilize since mortgage rates have fallen to near 5%, thereby giving an additional boost of purchasing power to home buyers."

According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 5.41% in July, down from 5.52% in June. 

Single-family home sales declined to a seasonally adjusted annual rate of 4.31 million in July, down 5.5% from 4.56 million in June and down 19% from one year ago.

The median existing-home price for all housing types in June was $403,800, up 10.8% from July 2021 ($364,600), as prices increased in all regions. 

This marks 125 consecutive months of year-over-year increases, the longest-running streak on record, the NAR said.

The median existing single-family home price was $410,600 in July, up 10.6% from July 2021.

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 500,000 units in July, down 9.1% from June and down 29.6% from one year ago. The median existing condo price was $345,000 in July, an annual increase of 9.9%.

Total housing inventory at the end of July was 1.31 million, up 4.8% from June and unchanged from the previous year. 

Unsold inventory sits at a 3.3-month supply at the current sales pace, up from 2.9 months in June and 2.6 months in July 2021.

"We're witnessing a housing recession in terms of declining home sales and home building," Yun explained. "However, it's not a recession in home prices. Inventory remains tight and prices continue to rise nationally with nearly 40% of homes still commanding the full list price."

Properties typically remained on the market for 14 days in July, the same as in June and down from 17 days in July 2021. The 14 days on market are the fewest since NAR began tracking it in May 2011. About 82% of homes sold in July 2022 were on the market for less than a month.

The largest year-over-year median list price growth for July occurred in Miami (+36.2%), Memphis (+32.7%) and Orlando (+28.4%).

Phoenix reported the highest increase in the share of homes that had their prices reduced compared to last year (+31.8 percentage points), followed by Las Vegas (+28.6 percentage points) and Austin (+27.8 percentage points).

Here’s how existing-home sales break down by region:

• Sales in the Northeast slid to an annual rate of 620,000 in July, down 7.5% from June and 16.2% from July 2021. The median price in the Northeast was $444,000, an increase of 8.1% from the previous year.
• Existing-home sales in the Midwest declined 3.3% from the prior month to an annual rate of 1,190,000 in July, dropping 14.4% from July 2021. The median price in the Midwest was $293,300, up 7.0% from the previous year.
• Existing-home sales in the South waned 5.3% in July to an annual rate of 2,130,000, down 19.6% from one year ago. The median price in the South was $365,200, an increase of 14.7% from July 2021.
• Existing-home sales in the West retracted 9.4% compared to last month to an annual rate of 870,000 in July, down 30.4% from this time last year. The median price in the West was $614,900, an 8.1% jump from July 2021.

"The action is in the pricey West region which experienced the sharpest sales decline combined with a sizable inventory increase," Yun said. "It's likely some western markets will see prices decline, and that will be welcome news for buyers who watched rapid price jumps during the past two years."

The National Association of Realtors represents more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.