Existing Home Sales Soften in August

Added Yun, “Hopes of a meaningful sales breakthrough as a result of this summer’s historically low mortgage rates failed to materialize because supply and affordability restrictions continue to keep too many would-be buyers on the sidelines.”

The median price for existing homes increased 5.1 percent year over year in August, to $240,200. Inventory fell 3.3 percent to 2.04 million existing homes for sale. Inventory is down 10.1 percent from August 2015 and has declined for 15 months in a row. At the current sales pace, inventory is at a 4.6 month supply, down from 4.7 months in July.

“It’s very concerning to see that inventory conditions not only show no signs of improving but have actually worsened in recent months from their already suppressed levels a year ago,” added Yun. “While recent data from the U.S. Census Bureau (link is external) shows that household incomes rose strongly last year, home prices are still outpacing incomes in many metro areas because of the persistent shortage of new and existing homes for sale. Without more supply, the U.S. homeownership rate will remain near 50-year lows.”

Single family home sales dropped 2.3 percent in August and was at a median sales price of $242,200. Condos and co-op sales jumped 10.5 percent to a SAAR of 630,000. Median price was $225,100, 3.7 percent higher year-over-year.

Existing home sales increased 6.1 percent in the Northeast in August. Sales in the Midwest declined less than 1 percent while sales in the South fell 2.7 percent, and in the West 1.6 percent.