August sees existing-home sales slide again

Existing-home sales slipped in August, marking the seventh consecutive month of declines, the National Association of Realtors (NAR) reported this morning.

Total existing-home sales faded by 0.4%from July to a seasonally adjusted rate of 4.80 million in August. The number includes completed transactions of single-family homes, townhomes, condos, and co-ops.

Year-over-year, sales are down 19.9% compared to 5.99 in August 2021.

Single-family home sales decreased to a seasonally adjusted rate of 4.28 million in August, down 0.9% from 4.32 million in July and down 19.2% from the previous year.

“The housing sector is the most sensitive to and experiences the most immediate impacts from the Federal Reserve’s interest rate policy changes,” said NAR Chief Economist Lawrence Yun. “The softness in home sales reflects this year’s escalating mortgage rates. Nonetheless, homeowners are doing well with near nonexistent distressed property sales and home prices still higher than a year ago.”

Prices across the nation continue to climb in August. The median existing-home price for all housing types in August was $389,500, a 7.7% jump from August 2021 and a price of $361,500. 

The latest report marks 126 consecutive months of year-over-year increases, the longest-running streak on record. 

The median existing single-family home price was $396,300 in August, up 7.6% from August 2021.

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 520,000 units in August, up 4% from July and down 24.6% from one year ago. The median existing condo price was $333,700 in August, an annual increase of 7.8%.

The largest year-over-year median list price growth occurred in Miami (+33.4%), Memphis (+25.8%), and Milwaukee (+25.0%).

Phoenix reported the highest increase in the share of homes that had their prices reduced compared to last year (+30.9 percentage points), followed by Austin (+24.8 percentage points), and Las Vegas (+24.4 percentage points).

Total housing inventory at the end of August sat at 1.280 million units, a decrease of 1.5% from July and unchanged from the previous year. 

Unsold inventory sits at a 3.2-month supply at the current sales pace – identical to July and up from 2.6 months in August 2021.

“Inventory will remain tight in the coming months and even for the next couple of years,” Yun noted. “Some homeowners are unwilling to trade up or trade down after locking in historically-low mortgage rates in recent years, increasing the need for more new-home construction to boost supply.”

Here’s how existing-home sales and median prices break down by region:

• Existing-home sales in the Northeast grew 1.6% from July to an annual rate of 630,000 in August, down 13.7% from August 2021. The median price in the Northeast was $413,200, an increase of 1.5% from the previous year.
• Existing-home sales in the Midwest fell 3.3% from the prior month to an annual rate of 1.160 million in August, retreating 15.9% from August 2021. The median price in the Midwest was $287,900, up 6.6% from the previous year.
• At an annual rate of 2.130 million in August, existing-home sales in the South were identical to July but down 19.3% from one year ago. The median price in the South was $356,000, an increase of 12.4% from August 2021.
• Existing-home sales in the West expanded 1.1% compared to last month to an annual rate of 880,000 in August, down 29.0% from this time last year. The median price in the West was $602,900, a 7.1% increase from August 2021.