Sales of existing homes in the United States fell 2% in August as some buyers retreated from an overpriced market, the National Association of Realtors said on Wednesday
WASHINGTON (Pakistan Point News / Sputnik - 22nd September, 2021) Sales of existing homes in the United States fell 2% in August as some buyers retreated from an overpriced market, the National Association of Realtors said on Wednesday.
"Sales slipped a bit in August as prices rose nationwide," said Lawrence Yun, chief economist of the realtors' association. "Although there was a decline in home purchases, potential buyers are out and about searching, but much more measured about their financial limits, and simply waiting for more inventory."
Total existing-home sales, including for single-family homes, townhomes, condominiums and co-ops, fell 2% from July to a seasonally adjusted annual rate of 5.88 million in August, the association said in a statement.
Year-over-year, sales dropped 1.5%, it added.
Total housing inventory at the end of August was at 1.29 million units, down 1.5% from July's supply and down 13.4% from one year ago. Unsold inventory sits at a 2.6-month supply at the current sales pace, unchanged from July but down from 3 months from August 2020.
The median existing-home price for all housing types in August was $356,700, up 14.9% from August 2020, when it was at $310,400. It marked the 114th month running of year-over-year gain in existing home values, as prices rose in every region of the country.
"High home prices make for an unbalanced market, but prices would normalize with more supply," Yun said.
Dire housing shortages in the United States since the financial crisis of 2008 and last year's coronavirus outbreak have pushed up existing home prices to beyond the means of many Americans.
The median selling price for existing-homes in the United States rose 17.8 percent in July from a year earlier to hit a record high of $359,900, according to the realtors' association. Prices jumped especially after the outbreak of the pandemic in March 2020 as investment firms rushed to snap up properties at low prices and earn steady incomes from rent. The trend accelerated as more institutional investors started buying rapidly appreciating homes, further eroding affordability.
The Commerce Department said on Tuesday that new housing construction in the US grew more than 17% in the year to August while permits issued for new construction also rose double-digits, signaling efforts by builders to put up more homes in a supply-starved market.
