Existing home sales fell by 2% on a seasonally adjusted annual basis from July to August, breaking two months of consecutive increases, according to the latest report from the National Association of Realtors.
Total existing home sales, which include single-family homes, townhomes, condominiums, and co-ops, fell to a seasonally adjusted annual rate of 5.88 million in August, down 1.5% from one year ago.
Total housing inventory fell to 1.29 million units at the end of August, down 1.5% from July and down 13.4% from one year ago. Unsold inventory stands at a 2.6-month supply, unchanged from July but down from 14.9% in August 2020.
The median existing home price for all housing types was $356,700, up 14.9% from August 2020. This marks 114 straight months of price gains.
“Sales slipped a bit in August as prices rose nationwide,” says Lawrence Yun, NAR’s chief economist. “Although there was a decline in home purchases, potential buyers are out and about searching, but much more measured about their financial limits, and simply waiting for more inventory. … High home prices make for an unbalanced market, but prices would normalize with more supply.”
Properties typically remained on the market for 17 days in August, and 87% of homes sold last month were on the market for less than 30 days. First-time buyers accounted for 29% of sales in August, down from 30% in July and 33% in August 2020. “Securing a home is still a major challenge for many prospective buyers,” says Yun. “A number of potential buyers have merely paused their search, but their desire and need for a home remain.”
Single-family home sales fell to a seasonally adjusted annual rate of 5.19 million in August, down 1.9% from July and 2.8% from one year ago. The median existing single-family home price was $363,800 in August, up 15.6% from August 2020.
At the regional level, existing home sales fell 1.4% month to month in the Northeast, marking a 2.7% decline from August 2020. Sales in the Midwest fell 1.4% month to month and 2.1% YOY, while sales in the South fell 3% month to month and 0.8% YOY. Sales in the West fell 0.8% month to month and 1.6% YOY.
“We will continue working with federal policymakers and stakeholders from across the industry in an effort to increase housing supply and ensure the American Dream of homeownership remains accessible to as many people as possible,” says NAR president Charlie Oppler.
