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MNI BRIEF: US Existing Home Sales Down on Prices, Inventory

MNI (Washington)
(MNI) Washington

Sales of existing homes in the U.S. dipped in August, the National Association of Realtors said Wednesday, although the national median existing home price in August was USD356,700, an increase of 14.9% on a year ago.

August's decline was driven mostly by elevated home prices and low inventory levels, NAR chief economist Lawrence Yun told reporters, though y/y price increases are beginning to moderate. "By any standard a very strong price increase, but compared to what's happened in the past few months, that's showing moderation," Yun said, adding that y/y price gains next August shouldn't be above 5%. But many buyers are still being priced out of the market, he added, with first-time buyers making up just 29% of home sales last month, the lowest since January 2019.

Sales fell 2% through the month to a seasonally adjusted annual rate of 5.88 million. July's 5.99 million unit pace was revised slightly higher to a saar of 6 million. Inventory remained tight through the month, and just 1.29 million homes were available for sale at the end of August, up just slightly over July. That inventory would be exhausted in 2.6 months at the current sales pace and the average existing home in August spent just 17 days on the market.

MNI Washington Bureau | +1 202-371-2121 | brooke.migdon@marketnews.com
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MNI Washington Bureau | +1 202-371-2121 | brooke.migdon@marketnews.com
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