WASHINGTON (September 21, 2022) – Existing home sales fell slightly in August, marking the seventh consecutive month of declines, according to the National Association of REALTORS®. Sales on a monthly basis varied in the four major regions of the United States as two regions experienced increases, one remained unchanged and the other recorded a decline. On an annual basis, however, sales declined in all regions.
Total existing home sales,1 https://www.nar.realtor/existing-home-sales, completed transactions that include single-family homes, townhouses, condominiums and co-operatives, contracted slightly by 0.4% from July to a seasonally adjusted annual rate of 4.80 million in August. Year-over-year, sales fell 19.9% (5.99 million in August 2021).
“The real estate sector is the most sensitive and suffers the most immediate impacts from changes in the Federal Reserve’s interest rate policy,” said Lawrence Yun, chief economist at NAR. “The weakness in home sales reflects the escalation in mortgage rates this year. However, homeowners are doing well with near-non-existent distressed property sales and even higher home prices than they were a year ago.”
Total housing inventory2 registered at the end of August was 1,280,000 units, down by 1.5% compared to July and unchanged compared to the previous year. Unsold inventory stands at a 3.2 month supply at the current sales pace, the same as in July and up from 2.6 months in August 2021.
“The inventory will remain limited in the coming months and also for the next two years,” Yun added. “Some homeowners are unwilling to negotiate up or down after locking historically low mortgage rates in recent years, increasing the need for more new home builds to boost supply.”
The average price of the existing house3 for all types of housing in August it was $ 389,500, an increase of 7.7% compared to August 2021 ($ 361,500), as prices increased in all regions. This marks 126 consecutive months of year-over-year increases, the longest streak on record. However, it was the second consecutive month that the median selling price retreated after hitting an all-time high of $ 413,800 in June, the usual seasonal downward price trend after peaking in the early summer.
Properties typically remained on the market for 16 days in August, up from 14 days in July and down from 17 days in August 2021. 81% of homes sold in August 2022 were 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 Home buyers and sellers profile – released at the end of 20214 – reported 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 many cash sales, bought 16% of the homes in August, up from 14% in July and 15% in August 2021.
Troubled sales5 – foreclosures and short sales – accounted for around 1% of August sales, 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 for all of 2021 was 2.96%.
estate agent.com®The August Market Trends Report shows that the largest median year-over-year list price growth occurred in Miami (+ 33.4%), Memphis (+ 25.8%) and Milwaukee (+ 25.0%). Phoenix recorded the highest increase in the share of homes priced at last year (+30.9 percentage points), followed by Austin (+24.8 percentage points) and Las Vegas (+24, 4 percentage points).
Single-family and condominium sale
Sales of single-family homes fell at 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 the previous year. The average price of the existing single-family home was $ 396,300 in August, up 7.6% from August 2021.
Sales of existing condominiums and co-operatives were recorded at a seasonally adjusted annual rate of 520,000 units in August, up 4.0% from July and down 24.6% from a year ago. The average price of the existing condo was $ 333,700 in August, an annual increase of 7.8%.
“In a way, we are seeing a return to normal with the home buying process in relation to home inspections and appraisal contingencies, as those crazy bidding wars have basically stopped,” said NAR President Leslie. Rouda Smith, a REALTOR® of Plano, Texas, and an associate broker at Dave Perry-Miller Real Estate in Dallas. “In a constantly evolving market, REALTORS® help 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 average price in the Northeast was $. 413,200, with an increase of 1.5% over 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 average price in the Midwest was $ 287,900 , an increase of 6.6% compared to the previous year.
At an annual rate of 2,130,000 in August, existing home sales in the south were identical in July but down 19.3% from a year ago. The median price in the south was $ 356,000, up 12.4% from August 2021.
Existing home sales in the West increased 1.1% from last month to an annual rate of 880,000 in August, down 29.0% from this period last year. The median price in the West was $ 602,900, up 7.1% from August 2021.
The National Association of REALTORS® is America’s largest trade association, representing over 1.5 million members involved in all aspects of the residential and commercial real estate industry.
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For local information, please contact your local REALTORS association® for data from local multiple directory services (MLS). Local MLS data is the most accurate source of sales and pricing information in specific areas, although there may be differences in the reporting methodology.
NOTE: NAR’s Pending Home Sales Index for August is scheduled for release on September 28, and existing home sales for September will be released on October 20. Release times are 10am Eastern.
1 Sales of existing homes, which include single family homes, townhouses, condos and co-ops, are based on transaction closures from Multiple Listing Services. Changes in sales trends outside of MLS aren’t captured in monthly series. NAR periodically compares home sales using other sources to assess general home sales trends, including sales not reported by MLSs.
Existing home sales, based on closures, 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. Additionally, existing home sales, which account for more than 90% of total home sales, are based on a much larger sample of data – around 40% of multiple ad services data each month – and are typically not subject to large amounts of data from the previous month. revisions.
The annual rate for a given month represents the total number of actual sales for a year if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to account for seasonal variations in resale activity. For example, the volume of home sales is typically higher in the summer than in the winter, mainly due to differences in the climate and in household purchasing patterns. However, seasonal factors cannot compensate for abnormal weather patterns.
The collection of single-family data began monthly in 1968, while the collection of data from condominiums began quarterly in 1981; the series were combined in 1999 when the monthly data collection on condominiums began. Prior to this period, single-family homes accounted for more than nine out of 10 purchases. Historical comparisons for total home sales before 1999 are based on monthly single-family sales, combined with the corresponding quarterly sales rate for condominiums.
2 Data on total inventory and monthly supply are available through 1999, while single-family inventory and monthly supply are available until 1982 (prior to 1999, single-family sales accounted for more than 90% of transactions and condominiums were measured on a quarterly basis only).
3 The average price is where half is sold for more and half for less; medians are more typical of market conditions than average prices, which are skewed upward by a relatively small share of high-end transactions. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Monthly comparisons do not compensate for seasonal changes, particularly for the timing of household purchasing patterns. Changes in the composition of sales can distort data on median prices. Median and average prices from a year ago are sometimes reviewed in an automated process if additional data is received.
The national average condominium / co-op price is often higher than the median price of a single-family home because condominiums are concentrated in higher-cost real estate markets. However, in a given area, single-family homes typically sell more than condominiums, as seen in NAR’s metropolitan area quarterly price reports.
4 The survey results represent owner-occupiers and differ from the monthly results reported separately by NAR’s REALTORS® Confidence index, which includes all types of buyers. The annual study represents primary residence purchases only and does not include vacation home buyers and investors. The results include new and existing homes.
5 Troubled sales (foreclosures and short sales), days on the market, first time buyers, all-cash transactions and investors come from a monthly survey for NAR REALTORS® Confidence index, published on nar.realtor.