MNI DATA ANALYSIS: US August Existing Home Sales Unch at 5.34M

By Kevin Kastner, Shikha Dave, and Harrison Clarke

     WASHINGTON (MNI) - Home resales were unchanged in August at an annual rate

of 5.34 million, below expectations for a slight increase to a 5.36 million

pace, data released by the National Association of Realtors reported Thursday

showed.

     "With inventory stabilizing and modestly rising, buyers appear ready to

step back into the market," NAR Chief Economist Lawrence Yun told reporters.

     --SUPPLY UNCHANGED

     The number of housing units available for sale was unchanged in August at a

total of 1.92 million houses, keeping the months supply at 4.3 months at the

current sales pace from 4.3 months in July. This is the first year over year

gain in two years, but is "still far from a healthy level and new home

construction is not keeping up to satisfy demand," according to Yun. 

     July sales were unrevised at the originally reported 5.34 million rate. 

--REGIONAL DATA MIXED

     Sales increased by 7.6% and 2.4% in the Northeast and Midwest regions,

respectively, but declined by 0.4% in the South and 5.9% in the West regions.

"Strong gains in the Northeast and a moderate uptick in the Midwest helped to

balance out any losses in the South and West, halting months of downward

momentum," according to Yun.

--PRICES SHOW MODERATING GROWTH

     August's national median price of $264,800 was up 4.6% from a year earlier,

a sign of moderating price growth. Yun noted that "for the fourth consecutive

month, prices are moderating." However, prices are still rising faster than wage

growth, suggesting an affordability issue. 

--MNI Washington Bureau; +1 202-372-2121; email: shikha.dave@marketnews.com

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