Newsroom

September 20, 2017

August's existing-home sales pace slows to 1-year low

Existing-home sales decreased 1.7 percent in August, falling to a seasonally adjusted annual rate of 5.35 million, according to a NAFCU Macro Data Flash. While sales were 0.2 percent higher than a year ago, it was the slowest pace since last August.

Sales rose significantly in the Northeast region and slightly in the Midwest, but decreased in the South and West regions. Based on current sales, there were 4.2 months of supply at the end of August. Analysts consider six months of supply to be balanced between supply and demand.

"Despite robust demand, inventory fell for the third straight month and continues to constrain sales," said NAFCU Research Assistant Yun Cohen. "Looking ahead, hurricanes Harvey and Irma will likely slow sales in the South for the next few months, but the market is expected to rebound in 2018."

Cohen noted that Redfin reported earlier this month that about one-sixth of their contracts in the Houston area had been cancelled. Additionally, tours and closings were delayed and many lenders requested re-inspections to assess damage caused by the storm.

The median existing-home price fell 1.8 percent in August from July, but was 5.6 percent higher than the median price a year ago.