WASHINGTON—Existing-home sales decreased 1.3% nationwide in July to a seasonally adjusted annual rate of 5.44 million.
Despite the decreased sales, NAFCU Research Assistant Yun Cohen says the housing outlook remains positive due to a strong labor market and improving rates of household formation.
The sales data, released by the National Association of Realtors, shows 4.2 months of supply at the end of July, unchanged from June. Analysts consider six months of supply to be roughly balanced between supply and demand. Inventory decreased 1% in July and was down 9% from a year ago. Inventory has declined year-over-year for 26 consecutive months.
"Despite robust demand, inventory remains persistently low and continues to constrain sales," Cohen said in a NAFCU Macro Data Flash. "As a result of the tight market, listings in July typically went under contract in under 30 days for the fourth consecutive month.
"Affordability concerns also persist as price gains continue to outpace income growth. Nevertheless, the outlook for housing remains positive overall in light of a strong labor market and improving rates of household formation," Cohen added.
The median existing home price decreased from $263,300 in June to $258,300 (not seasonally adjusted) in July.
“This is 6.2% higher than the median price from a year ago. July marks the 65th consecutive month of year-over-year price increases,” Cohen said.