Total existing-home sales, https://www.nar.realtor/topics/existing-home-sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, retreated 1.7% to a seasonally adjusted annual rate of 5.35 million in August from 5.44 million in July, the National Association of Realtors reported Wednesday.
The median existing-home price for all housing types in August was $253,500, up 5.6% from August 2016 ($240,000). August’s price increase marks the 66th straight month of year-over-year gains.
Sales gains in the Northeast and Midwest were outpaced by declines in the South and West. Last month’s sales pace is 0.2% above last August, and is the lowest since then.
August existing-home sales in the Northeast jumped 10.8% to an annual rate of 720,000, and are now 1.4% above a year ago. The median price in the Northeast was $289,500, which is 5.6% above August 2016. In the Midwest, existing-home sales rose 2.4% to an annual rate of 1.28 million in August, and are now 0.8% above a year ago. The median price in the Midwest was $200,500, up 5.0% from a year ago.
Existing-home sales in the South decreased 5.7% to an annual rate of 2.15 million in August, and are now 0.9% lower than a year ago. The median price in the South was $220,400, up 5.4% from a year ago. Existing-home sales in the West fell 4.8% to an annual rate of 1.20 million in August, but are still 0.8% above a year ago. The median price in the West was $374,700, up 7.7% from August 2016.
Single-family home sales decreased 2.1% to a seasonally adjusted annual rate of 4.74 million in August from 4.84 million in July, but are still 0.4% above the 4.72 million pace a year ago. The median existing single-family home price was $255,500 in August, up 5.6% from August 2016.
Existing condominium and co-op sales climbed 1.7% to a seasonally adjusted annual rate of 610,000 units in August, but are still 1.6% below a year ago. The median existing condo price was $237,600 in August, which is 5.4% above a year ago.
Lawrence Yun, NAR chief economist, says the slump in existing sales stretched into August despite what remains a solid level of demand for buying a home. “Steady employment gains, slowly rising incomes and lower mortgage rates generated sustained buyer interest all summer long, but unfortunately, not more home sales,” he said. “What’s ailing the housing market and continues to weigh on overall sales is the inadequate levels of available inventory and the upward pressure it’s putting on prices in several parts of the country. Sales have been unable to break out because there are simply not enough homes for sale.”
Added Yun, “Some of the South region’s decline in closings can be attributed to the devastation Hurricane Harvey caused to the greater Houston area. Sales will be impacted the rest of the year in Houston, as well as in the most severely affected areas in Florida from Hurricane Irma. However, nearly all of the lost activity will likely show up in 2018.”
Total housing inventory at the end of August declined 2.1% to 1.88 million existing homes available for sale, and is now 6.5% lower than a year ago (2.01 million) and has fallen year-over-year for 27 consecutive months. Unsold inventory is at a 4.2-month supply at the current sales pace, which is down from 4.5 months a year ago.
Properties typically stayed on the market for 30 days in August, which is unchanged from July and down from 36 days a year ago. 51% of homes sold in August were on the market for less than a month.
Inventory data from realtor.com® reveals that the metropolitan statistical areas where listings stayed on the market the shortest amount of time in August were San Jose-Sunnyvale-Santa Clara, Calif., 29 days; Seattle-Tacoma-Bellevue, Wash., 30 days; Vallejo-Fairfield, Calif., 31 days; and San Francisco-Oakland-Hayward, Calif., and Salt Lake City, Utah, both at 32 days.
“Market conditions continue to be stressful and challenging for both prospective first-time buyers and home owners looking to trade up,” said Yun. “The ongoing rise in home prices is straining the budgets of some of these would-be buyers, and what is available for sale is moving off the market quickly because supply remains minimal in the lower- and mid-price ranges.”
First-time buyers were 31% of sales in August, which is down from 33% in July and is the lowest share since last August (also 31%). NAR’s 2016 Profile of Home Buyers and Sellers – released in late 2016 – revealed that the annual share of first-time buyers was 35%.
All-cash sales were 20% of transactions in August, up from 19% in July but down from 22% a year ago. Individual investors, who account for many cash sales, purchased 15% of homes in August, up from 13% in July and 12% a year ago. Distressed sales – foreclosures and short sales – were 4% of sales in August, down from 5% both in July and a year ago. 3% of August sales were foreclosures and 1% were short sales.
