August existing-home sales edge upward
Existing-home sales rose slightly in August, marking two consecutive months of growth, according to the National Association of Realtors.
Total existing-home sales rose 1.3% from July to a seasonally adjusted annual rate of 5.49 million in August. Overall sales are up 2.6% from sales of 5.35 million in August 2018. Sales include completed transactions of single-family homes, townhomes, condominiums and co-ops.
Lawrence Yun, NAR’s chief economist, attributed the increase in sales to falling mortgage rates.
“As expected, buyers are finding it hard to resist the current rates,” Yun said. “The desire to take advantage of these promising conditions is leading more buyers to the market.”
Single-family home sales sat at a seasonally adjusted annual rate of 4.90 million in August, up from 4.84 million in July and up 2.9% from a year ago. The median existing single-family home price was $280,700 in August 2019, up 4.7% from August 2018.
Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 590,000 units in August, 1.7% above the rate from the previous month and about equal to a year ago. The median existing condo price was $257,600 in August, which is up 5.2% from a year ago.
By region, August existing-home sales in the Northeast increased 7.6% to an annual rate of 710,000, a 1.4% rise from a year ago. The median price in the Northeast was $303,500, down 0.3% from August 2018. In the Midwest, existing-home sales grew 3.1% to an annual rate of 1.31 million, which is a 2.3% increase from August 2018. The median price in the Midwest was $220,000, a 6.6% jump from a year ago.
Existing-home sales in the South increased just 0.9% to an annual rate of 2.33 million in August, up 3.6% from a year ago. The median price in the South was $240,300, up 5.4% from one year ago. Sales in the West declined 3.4% to an annual rate of 1.14 million in August, 1.8% above a year ago. The median price in the West was $415,900, up 5.7% from August 2018.
The median existing-home price for all housing types in August was $278,200, up 4.7% from August 2018 ($265,600). August’s price increase marks the 90th straight month of year-over-year gains.
“Sales are up, but inventory numbers remain low and are thereby pushing up home prices,” said Yun. “Homebuilders need to ramp up new housing, as the failure to increase construction will put home prices in danger of increasing at a faster pace than income.”
Total housing inventory at the end of August decreased to 1.86 million, down from 1.90 million existing-homes available for sale in July, and marking a 2.6% decrease from 1.91 million one year ago. Unsold inventory is at a 4.1-month supply at the current sales pace, down from 4.2 months in July and from the 4.3-month figure recorded in August 2018.
Properties typically remained on the market for 31 days in August, up from 29 days in July and in August of 2018. The NAR reported that 49% of homes sold in August were on the market for less than a month.
First-time buyers were responsible for 31% of sales in August, down from 32% in July and equal to the 31% recorded in August 2018.
Today's news follows yesterday's report that housing starts increased 12.3% in August to a seasonally adjusted rate of 1.364 million from the revised July estimate of 1.215 million.
Total existing-home sales rose 1.3% from July to a seasonally adjusted annual rate of 5.49 million in August. Overall sales are up 2.6% from sales of 5.35 million in August 2018. Sales include completed transactions of single-family homes, townhomes, condominiums and co-ops.
Lawrence Yun, NAR’s chief economist, attributed the increase in sales to falling mortgage rates.
“As expected, buyers are finding it hard to resist the current rates,” Yun said. “The desire to take advantage of these promising conditions is leading more buyers to the market.”
Single-family home sales sat at a seasonally adjusted annual rate of 4.90 million in August, up from 4.84 million in July and up 2.9% from a year ago. The median existing single-family home price was $280,700 in August 2019, up 4.7% from August 2018.
Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 590,000 units in August, 1.7% above the rate from the previous month and about equal to a year ago. The median existing condo price was $257,600 in August, which is up 5.2% from a year ago.
By region, August existing-home sales in the Northeast increased 7.6% to an annual rate of 710,000, a 1.4% rise from a year ago. The median price in the Northeast was $303,500, down 0.3% from August 2018. In the Midwest, existing-home sales grew 3.1% to an annual rate of 1.31 million, which is a 2.3% increase from August 2018. The median price in the Midwest was $220,000, a 6.6% jump from a year ago.
Existing-home sales in the South increased just 0.9% to an annual rate of 2.33 million in August, up 3.6% from a year ago. The median price in the South was $240,300, up 5.4% from one year ago. Sales in the West declined 3.4% to an annual rate of 1.14 million in August, 1.8% above a year ago. The median price in the West was $415,900, up 5.7% from August 2018.
The median existing-home price for all housing types in August was $278,200, up 4.7% from August 2018 ($265,600). August’s price increase marks the 90th straight month of year-over-year gains.
“Sales are up, but inventory numbers remain low and are thereby pushing up home prices,” said Yun. “Homebuilders need to ramp up new housing, as the failure to increase construction will put home prices in danger of increasing at a faster pace than income.”
Total housing inventory at the end of August decreased to 1.86 million, down from 1.90 million existing-homes available for sale in July, and marking a 2.6% decrease from 1.91 million one year ago. Unsold inventory is at a 4.1-month supply at the current sales pace, down from 4.2 months in July and from the 4.3-month figure recorded in August 2018.
Properties typically remained on the market for 31 days in August, up from 29 days in July and in August of 2018. The NAR reported that 49% of homes sold in August were on the market for less than a month.
First-time buyers were responsible for 31% of sales in August, down from 32% in July and equal to the 31% recorded in August 2018.
Today's news follows yesterday's report that housing starts increased 12.3% in August to a seasonally adjusted rate of 1.364 million from the revised July estimate of 1.215 million.