Existing-home sales flat but prices climb
Existing-home sales in August were flat and remained at a seasonally adjusted rate of 5.34 million, the National Association of Realtors (NAR) reported.
This follows four straight months of declines. Existing-home sales include completed transactions of single-family homes, townhomes, condos, and co-ops.
Overall, sales are now down 1.5% from a year and the mark 5.42 million.
By region, August existing-home sales in the Northeast increased 7.6% to an annual rate of 710,000, but are still 2.7% below a year ago. The median price in the Northeast was $292,800, which is up 2.6% from August 2017.
In the Midwest, existing-home sales rose 2.4% to an annual rate of 1.28 million in August, but are down 0.8% from a year ago. The median price in the Midwest was $208,500, up 3.4% from last year.
Existing-home sales in the South decreased 0.4% to an annual rate of 2.23 million in August, up from 2.19 million a year ago. The median price in the South was $227,900, up 3.2% from a year ago.
Existing-home sales in the West dropped 5.9% to an annual rate of 1.12 million in August, 7.4% below a year ago. The median price in the West was $392,900, up 4.8% from August 2017.
“Strong gains in the Northeast and a moderate uptick in the Midwest helped to balance out any losses in the South and West, halting months of downward momentum,” said Lawrence Yun, chief economist of the NAR. “With inventory stabilizing and modestly rising, buyers appear ready to step back into the market.”
Single-family home sales were at a seasonally adjusted annual rate of 4.75 million in August, unchanged from July, and are 1% percent below the 4.8 million sales pace a year ago. The median existing single-family home price was $267,300 in August, up 4.9% from August 2017.
Existing condominium and co-op sales were at a seasonally adjusted annual rate of 590,000 units in August – unchanged from last month – and are down 4.8% from a year ago. The median existing condo price was $244,500 in August, which is up 2% percent from a year ago.
The median existing-home price for all housing types in August was $264,800, up 4.6% percent from August 2017 price of $253,100. The price increase in August marks the 78th straight month of year-over-year gains.
Total housing inventory at the end of August also remained unchanged from July at 1.92 million existing homes available for sale, and is up from 1.87 million a year ago. Unsold inventory is at a 4.3-month supply at the current sales pace, consistent from last month and up from 4.1 months a year ago.
Properties typically stayed on the market for 29 days in August, up from 27 days in July but down from 30 days a year ago. About 52% percent of homes sold in August were on the market for less than a month.
“While inventory continues to show modest year over year gains, it is still far from a healthy level and new home construction is not keeping up to satisfy demand,” said Yun. “Homes continue to fly off the shelves with a majority of properties selling within a month, indicating that more inventory – especially moderately priced, entry-level homes – would propel sales.”
The hottest metro areas in August were Midland, Texas; Fort Wayne, Ind.; San Francisco-Oakland-Hayward, Calif.; Columbus, Ohio; and Boise City, Idaho.
First-time buyers were 31% of sales in August, down from 32% last month, but flat compared to the same period last year, the NAR said.
This follows four straight months of declines. Existing-home sales include completed transactions of single-family homes, townhomes, condos, and co-ops.
Overall, sales are now down 1.5% from a year and the mark 5.42 million.
By region, August existing-home sales in the Northeast increased 7.6% to an annual rate of 710,000, but are still 2.7% below a year ago. The median price in the Northeast was $292,800, which is up 2.6% from August 2017.
In the Midwest, existing-home sales rose 2.4% to an annual rate of 1.28 million in August, but are down 0.8% from a year ago. The median price in the Midwest was $208,500, up 3.4% from last year.
Existing-home sales in the South decreased 0.4% to an annual rate of 2.23 million in August, up from 2.19 million a year ago. The median price in the South was $227,900, up 3.2% from a year ago.
Existing-home sales in the West dropped 5.9% to an annual rate of 1.12 million in August, 7.4% below a year ago. The median price in the West was $392,900, up 4.8% from August 2017.
“Strong gains in the Northeast and a moderate uptick in the Midwest helped to balance out any losses in the South and West, halting months of downward momentum,” said Lawrence Yun, chief economist of the NAR. “With inventory stabilizing and modestly rising, buyers appear ready to step back into the market.”
Single-family home sales were at a seasonally adjusted annual rate of 4.75 million in August, unchanged from July, and are 1% percent below the 4.8 million sales pace a year ago. The median existing single-family home price was $267,300 in August, up 4.9% from August 2017.
Existing condominium and co-op sales were at a seasonally adjusted annual rate of 590,000 units in August – unchanged from last month – and are down 4.8% from a year ago. The median existing condo price was $244,500 in August, which is up 2% percent from a year ago.
The median existing-home price for all housing types in August was $264,800, up 4.6% percent from August 2017 price of $253,100. The price increase in August marks the 78th straight month of year-over-year gains.
Total housing inventory at the end of August also remained unchanged from July at 1.92 million existing homes available for sale, and is up from 1.87 million a year ago. Unsold inventory is at a 4.3-month supply at the current sales pace, consistent from last month and up from 4.1 months a year ago.
Properties typically stayed on the market for 29 days in August, up from 27 days in July but down from 30 days a year ago. About 52% percent of homes sold in August were on the market for less than a month.
“While inventory continues to show modest year over year gains, it is still far from a healthy level and new home construction is not keeping up to satisfy demand,” said Yun. “Homes continue to fly off the shelves with a majority of properties selling within a month, indicating that more inventory – especially moderately priced, entry-level homes – would propel sales.”
The hottest metro areas in August were Midland, Texas; Fort Wayne, Ind.; San Francisco-Oakland-Hayward, Calif.; Columbus, Ohio; and Boise City, Idaho.
First-time buyers were 31% of sales in August, down from 32% last month, but flat compared to the same period last year, the NAR said.