Newsroom

September 22, 2016

Existing-home sales down 0.9%

A NAFCU Macro Data Flash report shows existing-home sales decreased 0.9 percent in August, led by a 2.3 percent sales decrease in single-family unit sales.

NAFCU Research Assistant Yun Cohen said the market also tightened due to a low number of listings.

"The lack of inventory also exacerbated affordability issues and further limited sales," Cohen wrote. "While inventory constraints will continue to be an issue, there are a few signs of improvement. A recent survey by Redfin found a record-high level of home seller confidence, with more than half of the respondents believing that now is a good time to sell."

The median existing-home price decreased from $243,300 in July to $240,200, not seasonally adjusted, in August. That figure is 5.1 percent higher than the median price a year ago; August was the 54th consecutive month of year-over-year price increases.

In related news, the Federal Housing Finance Agency's monthly House Price Index rose 0.5 percent between June and July. The index is calculated with home sale price information from mortgages sold to or guaranteed by government-sponsored agencies Fannie Mae and Freddie Mac.

The FHFA also reported that overall home prices increased 5.8 percent between July 2015 and July 2016. Cohen noted this growth is double the pace of wage growth during that time.