MNI DATA ANALYSIS: US Aug Existing Home Sales -1.7% to 5.35M

By Kevin Kastner and Holly Stokes

     WASHINGTON (MNI) - Home resales fell 1.7% in August to an annual rate of

5.35 million, below expectations for a slight increase to a 5.48 million pace,

but reflecting a sharp decline in Houston sales due to Hurricane Harvey, data

released by the National Association of Realtors reported Wednesday showed.

     Sales in Houston declined by 25% from their year ago level, NAR Chief

Economist Lawrence Yun told reporters. Without that decline, sales would have

been roughly flat in the month. Yun said that he expects sales in the Houston

region and most of Florida to be weak over the next four to five months, before

a rebound in 2018 due to the sales delays at the end of 2017.

     The number of housing units available for sale fell 2.1% in August to a

total of 1.88 million houses, keeping the months supply at 4.2 months at the

current sales pace, down from 4.5 months in August 2016. Yun noted that homes

are selling very fast and that more supply is needed to meet demand.

     Sales rose 10.8% in the Northeast and 2.4% in the Midwest, but declined by

5.7% in the large South region and 4.8% in the West. 

     August's national median price of $253,500 was up 5.6% from a year earlier,

still advancing much faster than wages, Yun again noted. These affordability

issues are restraining overall sales, particularly first-time buyers.

--MNI Washington Bureau; tel: +1 202-371-2121; email: kevin.kastner@marketnews.com

[TOPICS: MAUDS$,M$U$$$]