The
August Existing Home Sales report was just released this morning by the
National Association of Realtors and its clear that there are some bright spots
and some headwinds in the largest segment of the housing market.
Total existing–home sales for August, which are completed transactions that include single–family homes, townhomes, condominiums and co–ops, have risen year–over–year for 11 consecutive months and are 6.2 percent above a year ago (5.00 million).
The median existing–home price for all housing types in August was $228,700, which is 4.7 percent above August 2014 ($218,400). August's price increase marks the 42nd consecutive month of year–over–year gains.
Ok..things are looking good...so where are the headwinds? Here they are - inventory. While we have 11 straight months of year-over-year gains in sales and 42 straight months of home price increases, the August data compared to July actually fell -4.8%. Why? Inventory. There simply isn't enough homes available for sale in the most popular price points for buyers to purchase. Total housing inventory at the end of August rose 1.3 percent to 2.29 million existing homes available for sale, but is 1.7 percent lower than a year ago (2.33 million). Unsold inventory is at a 5.2–month supply at the current sales pace, up from 4.9 months in July. But anything below 6 months of supply is very constrictive to our housing market.
Total existing–home sales for August, which are completed transactions that include single–family homes, townhomes, condominiums and co–ops, have risen year–over–year for 11 consecutive months and are 6.2 percent above a year ago (5.00 million).
The median existing–home price for all housing types in August was $228,700, which is 4.7 percent above August 2014 ($218,400). August's price increase marks the 42nd consecutive month of year–over–year gains.
Ok..things are looking good...so where are the headwinds? Here they are - inventory. While we have 11 straight months of year-over-year gains in sales and 42 straight months of home price increases, the August data compared to July actually fell -4.8%. Why? Inventory. There simply isn't enough homes available for sale in the most popular price points for buyers to purchase. Total housing inventory at the end of August rose 1.3 percent to 2.29 million existing homes available for sale, but is 1.7 percent lower than a year ago (2.33 million). Unsold inventory is at a 5.2–month supply at the current sales pace, up from 4.9 months in July. But anything below 6 months of supply is very constrictive to our housing market.
Lawrence Yun, NAR chief economist, says home sales in August
lost some momentum to close out the summer. "Sales activity was down in
many parts of the country last month — especially in the South and West — as
the persistent summer theme of tight inventory levels likely deterred some
buyers," he said. "The good news for the housing market is that price
appreciation the last two months has started to moderate from the unhealthier
rate of growth seen earlier this year."
"With sales and
overall demand higher than a year ago and supply mostly unchanged, low
inventories will likely continue to limit options for those looking to buy this
fall even with the overall pool of buyers shrinking because of seasonal
factors," adds Yun. Source:
Brian Woolley
Prospect Mortgage
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