Existing home sales were lower in July as large declines in the Northeast and Midwest outweighed increases in the South and West
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Existing home sales were lower in July as large declines in the Northeast and Midwest outweighed increases in the South and West.
The National Association of Realtors reports that completed transactions were down 1.3% to a seasonally adjusted annual rate of 5.44 million in July from a downwardly-revised 5.51 million in June.
The median home price for existing properties continued higher rising 6.2% year over year to $258,300, marking the 65th consecutive month of annual gains.
"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,” said NAR chief economist Lawrence Yun.
Total inventory was down 1% at the end of July to 1.92 million existing homes; that’s 9% lower than a year ago and means unsold inventory was at 4.2 months supply.
Homes took slightly longer to sell in July at 30 days on the market compared to 28 in June. But days on market was down from 36 in July 2016.
"July was the fourth consecutive month that the typical listing went under contract in under one month," said Yun. "This speaks to the significant pent-up demand for buying rather than any perceived loss of interest. The frustrating inability for new home construction to pick up means inadequate supply levels will keep markets competitive heading into the fall."
