Wednesday, May 8, 2024
WASHINGTON - The U.S. real estate landscape experienced a subtle shift in the month of August as existing home sales registered a 0.7% decline, marking a notable moment in the ongoing housing market narrative. This data, compiled and analyzed by the National Association of Realtors® (NAR), reveals a nuanced story of regional variations and market dynamics.
One standout aspect of this report is the continued ascent of the median existing home sales price, which reached $407,100. This marks the third consecutive month where the median sales price has vaulted above the $400,000 threshold, registering a 3.9% increase compared to the previous year. This trajectory underscores the enduring demand for housing even in the face of shifting sales volumes.
The inventory of unsold existing homes, another critical metric, witnessed a minor decrease of 0.9% from the prior month. By the close of August, the total inventory stood at 1.1 million units, resulting in a 3.3-month supply at the prevailing sales pace. While this figure remains relatively stable compared to July, it shows a slight uptick from the same period in 2022, highlighting the ongoing challenge of tight housing supply.
The report also offers insights from NAR's Chief Economist, Lawrence Yun, who emphasized the stability of home sales in recent months, noting that they have neither surged nor plummeted. Yun further highlighted the pivotal role of mortgage rate fluctuations in the short term and the steady positive impact of job gains in the long run. The Southern region's relatively lighter decline in sales, attributed to greater regional job growth post-pandemic, showcases the intricate interplay of these economic factors.
Additional insights from the REALTORS® Confidence Index indicated that properties typically remained on the market for 20 days in August, a figure unchanged from July but up from 16 days in August 2022. First-time buyers accounted for 29% of sales in August, while all-cash transactions increased slightly to 27% of the total.
Distressed sales, including foreclosures and short sales, maintained stability at 1% of total sales in August, mirroring the previous month's and previous year's figures.
Mortgage rates, an influential factor in the real estate market, experienced a subtle shift. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.18% as of September 14, slightly higher than the prior week and significantly above the 6.02% rate observed one year ago.
Regional Variations Shape the Landscape
The U.S. housing market is a tapestry woven from the diverse threads of regional trends. In August, these trends showed distinct patterns:
Northeast
Existing home sales in the Northeast remained static compared to July, but the region witnessed a significant year-over-year decline of 22.6%. The median price in the Northeast reached $465,700, marking a robust 5.8% increase year-over-year.
Midwest
The Midwest region bucked the national trend, reporting a 1.0% increase in existing home sales compared to the previous month. However, year-over-year sales in the Midwest declined by 16.4%. The median price in this region reached $305,300, reflecting a 6.8% increase compared to August 2022.
South
Existing home sales in the Southern region took a dip, declining by 1.1% from July, leading to a 12.4% decrease compared to the same period last year. The median price in the South reached $366,100, showing a 3.2% year-over-year increase.
West
The Western region faced a 2.6% slump in existing home sales from the previous month, resulting in a 15.7% decline compared to the prior year. Nevertheless, the median price in the West stood at $609,300, reflecting a 1.0% increase from August 2022.
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