Existing-home sales slow their roll
After three months of upward progress, existing-home sales joined other housing metrics with a slowed-down pace in August.
According to the National Association of Realtors, total existing-home sales were down 4.8% to a seasonally adjusted annual rate of 5.31 million. That's compared to a slightly downward-revised 5.58 million in July.
Last month's decline was in spite of slowing price growth and increases in the proportion of sales to first-time buyers. The median existing–home price was $228,700, up 4.7% year-over-year; first-time buyers represented 32% of the total share in August, up from 28% in July.
Additionally, sales have been rising year-over-year for 11 consecutive months.
"Sales activity was down in many parts of the country last month — especially in the South and West — as the persistent summer theme of tight inventory levels likely deterred some buyers," said NAR chief economist Lawrence Yun. "The good news for the housing market is that price appreciation the last two months has started to moderate from the unhealthier rate of growth seen earlier this year."
Meanwhile, total housing inventory rose 1.3% to 2.29 million existing homes available for sale, which is 1.7% lower than last year.
"With sales and overall demand higher than a year ago and supply mostly unchanged, low inventories will likely continue to limit options for those looking to buy this fall even with the overall pool of buyers shrinking because of seasonal factors," added Yun.
For the single-family market, home sales were down 5.3% to a seasonally adjusted annual rate of 4.69 million in August (down from 4.95 million in July). That's still 6.1% above last year's pace.
The median single-family home price was $230,200, up 5.1% year-over-year.
Across the U.S., sales dropped most sharply in the West and South (7.8% and 6.6%, respectively). The Midwest declined by 1.5%, and sales were flat in the Northeast.