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    Analysis

    August 24, 2016

    Tight Inventory Slows July Sales of Existing Homes

    Written by Sandy Williams

    Existing home sales lost momentum in July, falling for the first time since November 2015. The National Association of Realtors reports that sales were down 3.2 percent from June to a seasonally adjusted annual rate of 5.39 million. On a year over year basis sales fell 1.6 percent marking only the second time in the last 21 months that sales were below their year ago level.

    Lawrence Yun, NAR chief economist, says existing sales fell off track in July after steadily climbing the last four months due to lack of affordable homes available to buyers. “Severely restrained inventory and the tightening grip it’s putting on affordability is the primary culprit for the considerable sales slump throughout much of the country last month,” he said. “Realtors are reporting diminished buyer traffic because of the scarce number of affordable homes on the market, and the lack of supply is stifling the efforts of many prospective buyers attempting to purchase while mortgage rates hover at historical lows.”

    Sandy Williams

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