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Existing-home sales fall again

8/22/2018
Existing-home sales fell for the fourth straight month in July to their slowest pace in over 2 years the National Association of Realtors reported today.

Total existing-home sales, including single-family homes, townhomes, condos, and co-ops, fell 0.7% to a seasonally adjusted annual rate of 5.34 million in July from 5.38 million in June. Taking into account last month’s decline, sales are now 1.5% below a year ago and have fallen on an annual basis for five straight months.

“Led by a notable decrease in closings in the Northeast, existing home sales trailed off again last month, sliding to their slowest pace since February 2016 at 5.21 million,” he said,” said Lawrence Yun, chief economist of the NAR. “Too many would-be buyers are either being priced out, or are deciding to postpone their search until more homes in their price range come onto the market.”

The median existing-home price for all housing types in July increased 4.5% to $269,600 from July 2017 and a median price of $258,100. July’s price increase marks the 77th straight month of year-over-year gains.

Total housing inventory at the end of July decreased 0.5% to 1.92 million existing homes available for sale. Unsold inventory is at a 4.3-month supply at the current sales pace.

Regionally, existing-home sales fell 8.3% in the East to an annual rate of 660,000, which is 1.5% below a year ago. The media price in the Northeast rose 6. 8% to $309,700.

In the Midwest, existing home sales fell 1.6% to an an annual rate of 1.25 million in July, and are 0.8 percent below a year ago. The median price in the Midwest was $210,500, up 2.5% from a year ago.

Existing-home sales in the South decreased 0.4% to an annual rate of 2.24 million in July, and are 0.4% lower than a year ago. The median price in the South was $233,400, up 2.7% from a year ago.

Only the West showed gains – the nation’s hottest regional market when it comes to prices – as sales increased 4.4% to an annual rate of 1.19 million in July. The median price in the West increased 5.1% to $392,700, up 5.1 percent from July 2017.

Overall, existing single-family home sales declined 0.2% to a seasonally adjusted annual rate of 4.75 million in July from 4.76 million in June, and are 1.2% below the 4.81 million sales pace a year ago. The median existing single-family home price was $272,300 in July, up 4.6% from July 2017.

Existing condo and co-op sales fell 4.8% to a seasonally adjusted annual rate of 590,000 units in July and are 3.3% below a year ago. The median existing condo price was $248,100 in July, which is 3.2% above a year ago.

The NAR said properties typically stayed on the market for 27 days in July, up from 26 days in June but down from 30 days a year ago. About 55% percent of homes sold in July were on the market for less than a month.

“Listings continue to go under contract in under month, which highlights the feedback from Realtors that buyers are swiftly snatching up moderately-priced properties,” said Yun. “Existing supply is still not at a healthy level, and new home construction is not keeping up to meet demand.”

First-time buyers made up 32% percent of sales in July, which is up from 31% last month but down from 33 percent year ago.
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