ARLINGTON, Va.—Existing-home sales in August were unchanged from July following four consecutive months of decline.
After analyzing the data, NAFCU Research Assistant Yun Cohen said the "lack of affordable inventory remains the largest constraint to sales."
"Price appreciation continues to outpace wage growth, while rising mortgage rates add to affordability woes," Cohen added. "While demand remains strong overall, there are some signs that it may be waning. According to a recent Redfin report, the numbers of tours and offers were both noticeably below their year ago levels in July. Hurricane Florence further dampens the short-term outlook by pushing off demand and disrupting construction activities in the Carolinas."
August sales were 1.5% lower than a year ago.
Sales By Region
Sales improved in two of the four regions during August. Sales in the Northeast increased 7.6%, followed by the Midwest (+2.4%). Sales in the West declined 5.9% during the month, followed by the South (-0.4%), Cohen said.
Based on current sales, there were 4.3 months of supply at the end of August – the same as July. Analysts consider six months of supply to be roughly balanced between supply and demand. Inventory was unchanged in August but was up 2.7% from a year ago.
The median existing-home price decreased from $269,300 in July to $264,800 (not seasonally adjusted) in August. This represents a 4.6% increase from a year ago. August marks the 78th consecutive month of year-over-year price increases, Cohen said.