Existing-home sales decreased 0.7% in August

WASHINGTON — Existing-home sales moved lower in August, according to the National Association of Realtors. Among the four major U.S. regions, sales improved in the Midwest, were unchanged in the Northeast, and slipped in the South and West. All four regions recorded year-over-year sales declines.

Total existing-home sales — completed transactions that include single-family homes, townhomes, condominiums and co-ops — slid 0.7 percent from July to a seasonally adjusted annual rate of 4.04 million in August. Year over year, sales fell 15.3 percent (down from 4.77 million in August 2022).

“Home sales have been stable for several months, neither rising nor falling in any meaningful way,” said Lawrence Yun, NAR chief economist. “Mortgage-rate changes will have a big impact over the short run, while job gains will have a steady, positive impact over the long run. The South had a lighter decline in sales from a year ago due to greater regional job growth since coming out of the pandemic lockdown.”

Total housing inventory registered at the end of August was 1.1 million units, down 0.9 percent from July and 14.1 percent from one year ago (1.28 million). Unsold inventory sits at a 3.3-month supply at the current sales pace, identical to July and up from 3.2 months in August 2022.

The median existing-home price for all housing types in August was $407,100, an increase of 3.9 percent from August 2022 ($391,700). All four U.S. regions posted price increases.

“Home prices continue to march higher, despite lower home sales,” Yun said. “Supply needs to essentially double to moderate home-price gains.”

REALTORS CONFIDENCE INDEX

According to the REALTORS Confidence Index, properties typically remained on the market for 20 days in August, unchanged from July and up from 16 days in August 2022. Seventy-two percent of homes sold in August were on the market for less than a month.

First-time buyers were responsible for 29 percent of sales in August, down from 30 percent in July and identical to August 2022. NAR’s 2022 Profile of Home Buyers and Sellers — released in November 2022 — found that the annual share of first-time buyers was 26 percent, the lowest since NAR began tracking the data.

All-cash sales accounted for 27 percent of transactions in August, up from 26 percent in July and 24 percent in August 2022.

Individual investors or second-home buyers, who make up many cash sales, purchased 16 percent of homes in August, the same share as in July and one year ago.

Distressed sales — foreclosures and short sales — represented 1 percent of sales in August, unchanged from July and the previous year.

MORTGAGE RATES

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.18 percent as of Sept. 14. That’s up from 7.12 percent the prior week and 6.02 percent one year ago.

SINGLE-FAMILY AND CONDO/CO-OP SALES

Single-family home sales waned to a seasonally adjusted annual rate of 3.60 million in August, down 1.4 percent from 3.65 million in July and 15.3 percent from the previous year. The median existing single-family home price was $413,500 in August, up 3.7 percent from August 2022.

Existing condominium and co-op sales recorded a seasonally adjusted annual rate of 440,000 units in August, up 4.8 percent from July but down 15.4 percent from one year ago. The median existing condo price was $354,600 in August, up 6.2 percent from the prior year ($333,900).

REGIONAL BREAKDOWN

At an annual rate of 480,000 in August, existing-home sales in the Northeast were unchanged from July but down 22.6 percent from August 2022. The median price in the Northeast was $465,700, up 5.8 percent from one year ago.

In the Midwest, existing-home sales increased by 1.0 percent from July to an annual rate of 970,000 in August, down 16.4 percent from the prior year. The median price in the Midwest was $305,300, up 6.8 percent from August 2022.

Existing-home sales in the South faded 1.1 percent from July to an annual rate of 1.84 million in August, a decrease of 12.4 percent from one year ago. The median price in the South was $366,100, up 3.2 percent from August 2022.

In the West, existing-home sales slumped 2.6 percent from the previous month to an annual rate of 750,000 in August, down 15.7 percent from the prior year. The median price in the West was $609,300, up 1.0 percent from August 2022.