Existing-Home Sales Slide Down 2.2% in July

  1. Existing-Home Sales in July:
    • Existing-home sales decreased in July, as the National Association of Realtors® reported.
    • Sales increased only in the West region, while they decreased in the Northeast, Midwest, and South regions.
    • All four major regions experienced a decline in sales compared to the previous year.
  1. Sales Figures:
    • Total existing home sales, including single-family homes, townhomes, condos, and co-ops, dropped by 2.2% from June to a seasonally adjusted annual rate of 4.07 million in July.
    • Year-over-year, sales decreased by 16.6% compared to July 2022 (down from 4.88 million).
  1. Factors Affecting Sales:
    • NAR Chief Economist Lawrence Yun attributed the current sales activity to inventory availability and mortgage rates.
    • Both inventory availability and mortgage rates have been unfavorable to buyers.
  1. Housing Inventory:
    • At the end of July, total housing inventory was 1.11 million units, marking a 3.7% increase from June.
    • However, there was a 14.6% decrease in inventory compared to last year’s period (1.3 million).
    • Unsold inventory was at a 3.3-month supply at the current sales pace, up from 3.1 months in June and 3.2 months in July 2022.
  1. Median Existing-Home Price:
    • The median price for existing homes of all types in July was $406,700, showing a 1.9% increase from July 2022 ($399,000).
    • Prices increased in the Northeast, Midwest, and South regions, while they remained unchanged in the West.
  1. Wealth Gains and Affordability:
    • Homeowners have generally experienced significant wealth gains in recent years and are less concerned about potential home price declines.
    • However, renters are facing growing challenges in terms of affordability due to high-interest rates.

The report highlights a decline in existing-home sales, with variations across different U.S. regions. Factors such as inventory availability, mortgage rates, and affordability challenges for renters influence the current housing market conditions.