Existing-home sales slip in August

Existing-home sales were on the up and up for the past four months, but the momentum didn't carry through August.

Sales decreased 1.8% last month to a seasonally adjusted annual rate of 5.05 million, a decline the National Association of Realtors attributed to investor activity.

"There was a marked decline in all-cash sales from investors,” said NAR chief economist Lawrence Yun. "On the positive side, first-time buyers have a better chance of purchasing a home now that bidding wars are receding and supply constraints have significantly eased in many parts of the country. As long as solid job growth continues, wages should eventually pick up to steadily improve purchasing power and help fully release the pent-up demand for buying.”

The picture wasn't consistent nationally, of course. Both the Northeast and the Midwest experienced gains (4.7% and 2.5%, respectively), though not enough to counter declines in the South and West (down 4.2% and 5.1%).

In terms of single-family homes, sales were also down 1.8% to a seasonally adjusted annual rate of 4.46 million (down from 4.54 million in July).

Meanwhile, the median existing-home price was $219,800 in August, a 4.8% year-over-year increase. The price for single-family homes was slightly higher -- $220,600.

Additionally, August's housing inventory dropped 1.7% to 2.31 million existing homes for sale, comprising a 5.5-month supply.

August's sales are still at their second-highest rate this year so far, though they're 5.3% below last year's pace.

July's estimate was downwardly revised to a seasonally adjusted annual rate of 5.14 million.