Existing Home Sales Fall for Second Consecutive Month in August

The National Association of Realtors said Thursday existing home sales in the U.S. fell for the second straight month in August, missing the median forecast. Total existing home sales fell 0.9% to a seasonally adjusted annual rate of 5.33 million, down from a downwardly revised 5.38 million in July. Following last month’s decline, existing home sales are at their second-lowest pace of 2016, though still a bit higher (0.8%) than the 5.29 million a year ago.

“Healthy labor markets in most the country should be creating a sustained demand for home purchases,” said Lawrence Yun, chief economist at NAR. “However, there’s no question that after peaking in June, sales in a majority of the country have inched backwards because inventory isn’t picking up to tame price growth and replace what’s being quickly sold.”

Regional Breakdown

Existing home sales in the Northeast increased 6.1% to an annual rate of 700,000, which was flat from a year ago. The median price in the Northeast was $274,100, 0.8% higher than August 2015.

In the Midwest, existing home sales decreased 0.8% to an annual rate of 1.27 million in August, but are still 0.8% higher from a year ago. The median price in the Midwest was $190,700, up 5.5 percent from a year ago.

Existing-home sales in the South in August fell 2.7% to an annual rate of 2.16 million, but are still 0.9% above August 2015. The median price in the South was $209,700, up 6.7% from a year ago.

Existing-home sales in the West lessened 1.6% to an annual rate of 1.20 million in August, but are still 0.8% higher than a year ago. The median price in the West was $347,400, which is 9.2% above August 2015.