ARLINGTON, Va.—While there was "sagging" home sales through the early part of this year, NAFCU Chief Economist and Vice President of Research Curt Long said, "the housing market has recovered nicely," as existing-home sales grew 1.3% (seasonally adjusted) in August to 5.49 million units.
"Of course, mortgage rates have fallen precipitously since that time," Long noted. "While that may be shoring up demand, supply remains the largest constraint. At the current sales pace, listed inventory would be exhausted in about four months, which is well below the six-month mark that has traditionally indicated a rough equilibrium. Housing starts have risen this year, which should help to a degree. NAFCU expects more modest growth in the housing market."
Looking across the country, existing home sales in August increased in the Northeast 7.6%, followed by the Midwest (+3.1%) and the South (+0.9%). Sales fell 3.4% in the West.
The median existing home price fell from $280,400 in July to $278,200 in August (not seasonally adjusted), representing a 4.7% increase from a year ago, Long said.