ARLINGTON, Va.—Existing home sales fell 2% in August to a seasonally adjusted annual rate of 5.88 million units.
This represents a 1.5% decrease in sales versus a year ago.
NAFCU's Curt Long noted “existing home sales fell for the first time since May as low supply and high prices are continuing to weigh heavily on the market.”
"Inventory is still extremely low, hovering around 2.6 months of supply and far lower than before the pandemic," said Long, NAFCU's chief economist and vice president of research. "The heightened competition for limited inventory is likely keeping some discouraged buyers on the sidelines, which is preventing the balance from becoming even more lopsided. On the building side, permits have risen 6% on the month, while housing starts are up 3.9%. Until they can catch up, homebuilders will limit their sales as they battle labor and material shortages.”
Sales fell in all four regions this month. The South saw the largest drop, falling 3% on the month, followed by the Northeast (-1.4%), the Midwest (-1.4%), and the South (-0.8%). Versus a year ago, sales were down in all regions.
The median existing home price declined from $359,500 in July to $356,700 in August (not seasonally adjusted). That is a 14.9% increase from a year ago.
"There are no concerns on the demand side as mortgage rates remain low and the job market is still improving," concluded Long. “NAFCU expects sales to remain steady until new supply comes online.”