Existing-home sales slip in August
Existing-home sales slipped by 0.7% in August, compared to the prior month, to a seasonally adjusted rate of 4.04 million, the National Association of Realtors reported today.
On a year-over-year basis, sales declined 15.3% in comparison to 4.77 million in August 2022. Total existing-home sales include completed transactions of single-family homes, townhomes, condos, and co-ops.
Single-family home sales for August dipped by 1.4% to a seasonally adjusted annual rate of 3.60 million from 3.65 million in July and 15.3% from the previous year. The median existing single-family home price was $413,500 in August, up 3.7% from August 2022.
The median existing-home price for all housing types in August was $407,100, an increase of 3.9% from August 2022 ($391,700).
“Home sales have been stable for several months, neither rising nor falling in any meaningful way,” said NAR Chief Economist Lawrence Yun. “Mortgage rate changes will have a big impact over the short run, while job gains will have a steady, positive impact over the long run. The South had a lighter decline in sales from a year ago due to greater regional job growth since coming out of the pandemic lockdown.”
Total housing inventory registered at the end of August was 1.1 million units, down 0.9% from July and 14.1% from one year ago (1.28 million). Unsold inventory sits at a 3.3-month supply at the current sales pace, identical to July and up from 3.2 months in August 2022.
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.18% as of Sept. 14. That’s up from 7.12% the prior week and 6.02% one year ago.
“Home prices continue to march higher despite lower home sales,” Yun said. “Supply needs to essentially double to moderate home price gains.”
According to the Realtors Confidence Index, properties typically remained on the market for 20 days in August, unchanged from July and up from 16 days in August 2022. About 72% percent of homes sold in August were on the market for less than a month. First-time buyers were responsible for 29% of sales in August, down from 30% in July.
Here’s how existing-home sales performed on a regional basis:
- At an annual rate of 480,000 in August, existing-home sales in the Northeast were unchanged from July but down 22.6% from August 2022. The median price in the Northeast was $465,700, up 5.8% from one year ago.
- In the Midwest, existing-home sales increased by 1.0% from the previous month to an annual rate of 970,000 in August, down 16.4% from the prior year. The median price in the Midwest was $305,300, up 6.8% from August 2022.
- Existing-home sales in the South faded 1.1% from July to an annual rate of 1.84 million in August, a decrease of 12.4% from one year ago. The median price in the South was $366,100, up 3.2% from August 2022.
- In the West, existing-home sales slumped 2.6% from the previous month to an annual rate of 750,000 in August, down 15.7% from the prior year. The median price in the West was $609,300, up 1.0% from August 2022.
