MNI DATA IMPACT: US Aug Existing Home Sales Fastest In A Year

By Brooke Migdon

     WASHINGTON (MNI) - The pace of existing home sales rose by 1.3% to a 5.49

million annual rate in August, the fastest pace in more than a year, the

National Association of Realtors said Thursday.

     NAR Chief Economist Lawrence Yun said underperforming home sales may

finally be picking up.

     "Perhaps we have turned a corner for good," he told reporters on Thursday,

adding that "historically low" mortgage rates have bolstered recent home buying.

     Yun said mortgage rates have always been a "powerful" force in the housing

sector and are continuing to entice buyers into the market. But many realtors

and buyers alike are hesitating due to expectations that the Federal Reserve

could cut benchmark rates further, potentially impacting mortgages. 

     However, the two measures have no direct correlation, according to Yun.

     "Buyers are wondering whether they should wait," Yun said. "The Fed may be

bringing some confusion into the market for homebuyers."

     The following are the other key points from Thursday's release:

     --Available homes for sale in August reached 1.86 million, down 2.6% from

1.91 million in August 2018, which Yun attributed to a sustained inventory

shortage. August housing starts climbed to a 12-year high, but even more

construction is needed. "Even if there is a 50% increase in starts, the market

can easily absorb it," he said.

     --Sales rose by 7.6% in the Northeast, 3.1% in the Midwest, and 0.9% in the

South. Sales in the West fell by 3.4%. 

     --The median sales price for August was $278,200, up 4.7% from a year ago

and outpacing wage growth and other inflationary measures, Yun said, adding,

"It's not healthy."

--MNI Washington Bureau; +1 202-371-2121; email: jean.yung@marketnews.com

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