WASHINGTON (September 21, 2022) — Existing home sales fell slightly in August, declining for the seventh consecutive month, according to the National Association of Realtors.®. Sales varied on a monthly basis across the four major regions of the US with two regions posting increases, one unchanged and the other recording declines. On an annual basis, sales are down in all regions.
total existing home sales,1 https://www.nar.realtor/existing-home-sales, completed transactions involving single-family homes, condominium homes, condominiums and cooperatives, posted a slight contraction of 0.4% from July to a seasonally adjusted annual rate of 4.80 million in August. On an annual basis, sales faded 19.9% (5.99 million in August 2021).
“The housing sector is the most sensitive and exposed to the most immediate impacts from the Fed’s interest rate policy changes,” said NAR Chief Economist Lawrence Yun. “The weakness in home sales reflects an uptick in mortgage rates this year. However, homeowners are doing well with nearly faltering property sales and home prices still higher than they were a year ago.”
total housing inventory2 1,280,000 units were registered at the end of August, down 1.5% from July and unchanged from the previous year. There is 3.2 months unsold inventory on display at the current sales pace – similar to July and up from 2.6 months in August 2021.
“The stockpile will remain tight in the coming months and even over the next two years,” Yoon added. “Some homeowners are unwilling to trade up or down after locking in historically low mortgage rates in recent years, which increases the need for more new home construction to boost supply.”
Average Existing Home Price3 For all housing types in August, it was $389,500, a 7.7% jump from August 2021 ($361,500), as prices rose in all areas. This represents 126 consecutive months of year-over-year increases, the longest streak ever recorded. However, it was the second consecutive month that the average sales price declined after hitting a record $413,800 in June, the usual seasonal trend for prices to fall after peaking in early summer.
Real estate typically remained on the market for 16 days in August, up from 14 days in July, and down from 17 days in August 2021. Eighty-one percent of homes sold in August 2022 had been on the market for less than a month.
First-time buyers were responsible for 29% of sales in August, consistent with July 2022 and August 2021. NAR’s 2021 AT A GLANCE FOR HOME BUYERS AND SELLERS Released in late 20214 – You mentioned that the annual share of first-time buyers was 34%.
All-cash sales accounted for 24% of transactions in August, the same share as in July, but up from 22% in August 2021.
Individual investors or second home buyers, who make up a lot of cash sales, bought 16% of homes in August, up from 14% in July and 15% in August 2021.
faltering sales5 Foreclosures and short selling – accounted for approximately 1% of sales in August, essentially unchanged from July 2022 and August 2021.
According to Freddie Mac, the average commitment rate for a conventional 30-year fixed-rate mortgage was 5.22% in August, down from 5.41% in July. The average commitment rate throughout 2021 was 2.96%.
Realtor.com®The August Market Trends report shows that the largest annual list price growth occurred in Miami (+33.4%), Memphis (+25.8%) and Milwaukee (+25.0%). Phoenix had the highest increase in the percentage of homes reduced in price from last year (+30.9 percentage points), followed by Austin (+24.8 percentage points) and Las Vegas (+24.4 percentage points).
Single family and apartment/cooperative sales
Sales of single-family homes fell to a seasonally adjusted annual rate of 4.28 million in August, down 0.9% from 4.32 million in July and down 19.2% from a year earlier. The current median single-family home price was $396,300 in August, up 7.6% from August 2021.
Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 520,000 units in August, up 4.0% from July and up 24.6% from a year ago. The current median apartment price was $333,700 in August, an annual increase of 7.8%.
“In a sense, we’re seeing a return to normalcy with the home buying process as it relates to home inspections and emergency assessments where these crazy bidding wars basically stopped,” said NAR President Leslie Rhoda Smith.® of Plano, Texas, and broker partner at Dave Perry-Miller Real Estate in Dallas. In an ever-changing market, brokers® Helping consumers successfully manage the complexities of buying or selling homes.”
Existing home sales in the Northeast grew 1.6% from July to an annual rate of 630,000 in August, down 13.7% from August 2021. The median price in the Northeast was $413,200, up 1.5% from the previous year.
Existing home sales in the Midwest fell 3.3% from the previous month to an annual rate of 1,160,000 in August, down 15.9% from August 2021. The median price in the Midwest was $287,900, up 6.6% from the previous year.
At an annual rate of 2,130,000 in August, existing home sales in the South were similar to July but down 19.3% from a year ago. The median price in the South was $356K, a 12.4% increase from August 2021.
Existing home sales in the West expanded 1.1% from last month at an annual rate of 880,000 in August, down 29.0% from this time last year. The median price in the West was $602,900, up 7.1% from August 2021.
National Association of Realtors® It is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.
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For local information, please contact your local Association of Realtors® To get data from Local Multiple List Services (MLS). Local MLS data is the most accurate source of sales and price information for specific regions, although there may be differences in reporting methodology.
Note: The NAR Pending Home Sales Index for August is scheduled to be released on September 28, and the Existing Home Sales for September will be released on October 20. Release times are 10 AM ET.
1 Existing home sales, which include single-family homes, condominiums, condominiums, and co-ops, are based on closing transactions from multiple listing services. Changes in sales trends outside of MLSs are not recorded in the monthly series. The NAR measures home sales periodically using other sources to assess overall home sales trends, including sales not reported by the MLS.
Existing home sales, based on closings, differ from the US Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing home sales, which account for more than 90% of total home sales, are based on a much larger data sample—about 40% of multiple listing service data each month—and are not typically subject to significant previous month revisions.
The annual average for a given month represents the total number of actual sales for a year if that month’s relative pace was maintained for 12 consecutive months. Seasonally adjusted annual rates are used to report monthly data to exclude seasonal changes in reselling activity. For example, the volume of home sales is usually higher in summer than in winter, mainly due to differences in weather and household buying patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
Monthly single-family data collection began in 1968, while quarterly apartment data collection began in 1981; The series was merged in 1999 when the monthly collection of apartment data began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historical comparisons of total home sales prior to 1999 are based on monthly single-family sales, along with the corresponding quarterly sales rate for apartments.
2 Total inventory and monthly supply data have been available since 1999, while single-family inventory and month-supply data have been available since 1982 (prior to 1999, single-family sales accounted for more than 90% of transactions and housing units were only measured on a quarterly basis).
3 Average price is where half is sold for more and half is sold for less; Averages are more typical of market conditions than average prices, which tend to be higher with a relatively small share of higher transactions. The only valid comparisons of average prices are with the same period a year ago due to seasonality in buying patterns. Month-to-month comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Changes in the composition of sales can distort the average price data. Sometimes the average and average prices over the past year are reviewed in an automated process if additional data is received.
The average national apartment/condominium price is often higher than the average single-family home price because apartments are concentrated in high-cost housing markets. However, in a given area, single-family homes usually sell for more than apartments as shown in NAR’s quarterly metro area price reports.
4 The survey results represent the real estate owners and are different from the monthly results reported separately from NAR . brokers® The confidence index, which includes all types of buyers. The annual survey represents only initial accommodation purchases, and does not include investors and vacation home buyers. The results include both new and existing homes.
5 Distressed sales (foreclosures and short sales), days in the market, first-time buyers, all cash transactions and investors from a monthly REALTORS survey in NAR® Trust Index, posted on nar.realtor.
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