August US existing home sales from the National Association of Realtors fell 0.4% month-over-month to a seasonally adjusted annual rate of 4.80 million (consensus 4.70 million) versus an upwardly revised 4.82 million (from 4.81 million) in July. That is the seventh straight month that existing home sales have fallen. Total sales in August were down 19.9% from a year ago. The last time sales declined for seven consecutive months was between August 2013 and January 2014, according to NAR. Higher interest rates are creating affordability pressures for prospective buyers. This is becoming an even bigger factor, the average 30-year fixed mortgage rates hit 6.25% for the first-time since October 2008 last week,
Median existing home price for all housing types increased 7.7% year-over-year, versus 9.5% in July, to $389,500, representing the 126th consecutive month of year-over-year gains. That is the longest-running streak on record. However, prices fell month-over-month for the second straight month after reaching a record high of $413,800 in June.
Despite the slowdown the number of homes for sale is still below normal levels. While home prices have fallen from their springtime peaks in some markets, prices remain above where they stood a year ago.
“The rising mortgage rate has clearly hampered the housing market” said Lawrence Yun, NAR’s chief economist.
In the four weeks ended Sept. 11, 7.2% of homes on the market each week had a price drop, up from 3.8% a year earlier, according to real-estate brokerage Redfin Corp. Homes on average sold for 0.5% below their final list price, compared with 1.1% above list price a year earlier.
The typical home sold in August was on the market for 16 days, up from 14 days from the prior month, NAR said.
Data for August 2022
Highlights
- Existing home sales decreased 0.4% month-over-month in August to a seasonally adjusted annual rate of 4.80 million (consensus 4.70 million) versus an upwardly revised 4.82 million (from 4.81 million) in July.
- That is the seventh straight month that existing home sales have fallen.
- Total sales in August were down 19.9% from a year ago.
The median existing home price for all housing types increased 7.7% year-over-year, versus 9.5% in July, to $389,500, representing the 126th consecutive month of year-over-year gains. That is the longest-running streak on record.
- Median existing home price for all housing types increased 7.7% year-over-year, versus 9.5% in July, to $389,500
- The 126th consecutive month of year-over-year gains. That is the longest-running streak on record.
- The median price for single-family homes increased 7.6% year-over-year to $396,300.
- The inventory of homes for sale at the end of August was down 1.5% month-over-month at 1,280,000 units, and unchanged from a year ago.
- Unsold inventory held steady at a 3.2-month supply at the current sales pace, versus 2.6 months in the same period a year ago. It is still well below the 6.0-months’ supply typically associated with a more balanced market.
- First-time buyers accounted for 29% of sales in August, the same as in July and in August 2021.
- All-cash sales comprised 24% of transactions in August, the same as in July, and up from 22% in August 2021.
- 81% of homes sold in August were on the market for less than a month, with properties typically remaining on the market for 16 days, up from a record-low 14 days in July and down from 17 days in August 2021.
Regional Breakdown
- Existing home sales across regions: Northeast (+1.6%); Midwest (-3.3%); South (flat); and West (+1.1%).
- Median home prices by region year-over-year: Northeast (+1.5% to $413,200); Midwest (+6.6% to $287,900); South (+12.4% to $356,000); and West (+7.1% to $602,900).
“The action is in the pricey West region which experienced the sharpest sales decline combined with a sizable inventory increase,” Yun said. “It’s likely some Western markets will see prices decline, and that will be welcome news for buyers who watched rapid price jumps during the past two years.”
The National Association of Realtors® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.
U.S. home-builder confidence fell for the ninth straight month in September to the lowest level since May 2020, the National Association of Home Builders said this week. About one-fourth of builders surveyed said they had reduced prices in the past month, NAHB said.
Housing starts, a measure of U.S. home-building, rose 12.2% in August from July, the Commerce Department said this week. Residential permits, which can be a bellwether for future home construction, fell 10%, however.
Existing home sales account for 90% of US transactions and are calculated on a contract close basis. New home sales account for the remaining 10% and are based on contract signings.
Existing-home sales include single-family, townhomes, condominiums and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR benchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.
Existing-home sales, based on closings, differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90% of total home sales, are based on a much larger data sample – about 40% of multiple listing service data each month – and typically are not subject to large prior-month revisions.
Source: NAHB
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