Existing-home sales dipped in August relative to July but were up slightly compared with August 2016, according to the National Association of Realtors (NAR).
It was the fourth time in five months that existing-home sales fell, as tight inventory continued to subdue overall activity.
Regionally, increases in the Northeast and Midwest were offset by decreases in the South and West.
Sales of existing single-family homes, townhouses, condominiums and co-ops were at a seasonally adjusted annual rate of 5.35 million, as of the end of August. That’s a decrease of 1.7% compared with 5.44 million in July but an increase of 0.2% compared with August 2016.
“Steady employment gains, slowly rising incomes and lower mortgage rates generated sustained buyer interest all summer long, but unfortunately, not more home sales,” says Lawrence Yun, chief economist for NAR, in a release. “What’s ailing the housing market and continues to weigh on overall sales is the inadequate levels of available inventory and the upward pressure it’s putting on prices in several parts of the country. Sales have been unable to break out because there are simply not enough homes for sale.”
Yun adds that hurricanes Harvey and Irma will have some impact on existing-home sales in Texas and Florida, however, the “lost activity” likely won’t show up in any reports until 2018.
“Sales will be impacted the rest of the year in Houston, as well as in the most severely affected areas in Florida from Hurricane Irma. However, nearly all of the lost activity will likely show up in 2018,” he says.
The median existing-home price for all housing types in August was $253,500, an increase of 5.6% compared with August 2016 ($240,000). August marked the 66th straight month that the national average home price increased on a year-over-year basis.
As of the end of August there were about 1.88 million existing-homes available for sale, a decrease of 6.5% compared with about 2.01 million in August 2016. That’s about a 4.5-month supply at the current sales rate. What’s more, it was a drop of 2.1% compared with July.
Total inventory as of August had dropped for 42 consecutive months.