U.S. existing-home sales increased for the first time in five months, as lower mortgage rates and rising supply helped boost market activity. According to the National Association of REALTORS® (NAR), sales of previously owned homes rose 1.3% month-over-month to a seasonally adjusted annual rate of 3.95 million units, exceeding economists’ expectations and ending the downward trend of recent months.
New listings decreased 17.4% for residential homes but increased 1.8% for townhouse/condo homes. Pending sales decreased 5% for residential homes and 17.8% for townhouse/condo homes. Inventory decreased 13.4% for residential homes but increased 53.2% for townhouse/condo homes.
Median sales price increased 7% to $311,000 for residential homes and remained flat at $225,000 for townhouse/condo homes. Days on market increased 8.7% for residential homes and 50% for townhouse/condo homes. Months supply of inventory decreased 10% for residential homes but increased 60% for townhouse/condo homes.
Nationally, total housing inventory edged up 0.8% from the previous month to 1.33 million units heading into August, for a 4-month supply at the current sales pace, NAR data shows. Although inventory is up nearly 20% compared to the same time last year, demand continues to outpace supply, putting upward pressure on sales prices. According to NAR, the nationwide median existing-home price rose 4.2% year-over-year to $422,600 at last measure, marking the 13th consecutive month of annual price increases.
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