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MNI BRIEF: US Existing Home Sales Slipped 2.5% To 3.86M In Aug

U.S. sales of existing homes in August fell 2.5% to a seasonally adjusted annual rate of 3.86 million, the National Association of Realtors said Thursday, below expectations. Sales have been below a pace of 4 million for three straight months and are down 4.2% on the year.

But Lawrence Yun, NAR chief economist, told reporters he is optimistic about the future pace of home sales, pointing to wages that are now beginning to outpace home price growth. "There's a long period where wages needed to catch up with home prices," he said. Since the pandemic, "home prices have risen by 49% nationwide, while wages over that same five year time period grew by 25%. So essentially, home prices cumulatively have outpaced wage gains by roughly a two-to-one ratio."

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U.S. sales of existing homes in August fell 2.5% to a seasonally adjusted annual rate of 3.86 million, the National Association of Realtors said Thursday, below expectations. Sales have been below a pace of 4 million for three straight months and are down 4.2% on the year.

But Lawrence Yun, NAR chief economist, told reporters he is optimistic about the future pace of home sales, pointing to wages that are now beginning to outpace home price growth. "There's a long period where wages needed to catch up with home prices," he said. Since the pandemic, "home prices have risen by 49% nationwide, while wages over that same five year time period grew by 25%. So essentially, home prices cumulatively have outpaced wage gains by roughly a two-to-one ratio."

Keep reading...Show less