A under contract sign on a home previously for sale in Vienna, Va. (Photo: Reuters)
The National Association of Realtor (NAR) said Thursday existing home sales in the U.S. declined as the Northeast and Midwest weighed down increases in the South and West.
Total existing-home sales–which are completed transactions that include single-family homes, townhomes, condominiums and co-ops–declined by 1.3% to a seasonally adjusted annual rate of 5.44 million, down from a downwardly revised 5.51 million in June.
“Buyer interest in most of the country has held up strongly this summer and homes are selling fast, but the negative effect of not enough inventory to choose from and its pressure on overall affordability put the brakes on what should’ve been a higher sales pace,” Lawrence Yun, NAR chief economist said. “Contract activity has mostly trended downward since February and ultimately put a large dent on closings last month.”
The sales pace in July was still 2.1% above a year ago, but is the lowest of 2017.
The overall median existing-home price was $258,300, up 6.2% from July 2016 when it was $243,200. July’s price increase marks the 65th straight month of year-over-year gains.
Inventory declined 1.0% to 1.92 million existing homes available for sale and is now 9.0% lower than a year ago when it was at 2.11 million. It has fallen year-over-year for 26 consecutive months. Unsold inventory is at a 4.2-month supply at the current sales pace, which is down from 4.8 months a year ago.
“Home prices are still rising above incomes and way too fast in many markets,” said Mr. Yun. “Realtors continue to say prospective buyers are frustrated by how quickly prices are rising for the minimal selection of homes that fit buyers’ budget and wish list.”
