Monday, September 22, 2014

Existing Home Sales Decline in August as Investors Leave Market

Existing home sales declined for the first time in 5 months in August. Sales settled at an annual pace of 5.05 million, a 1.8% decline from July. Sales are 5.3% below year ago levels. However, the decline in sales is largely attributed to investors leaving the market, a healthy sign for home buyers. Individual investors, who account for the majority of cash sales, purchased 12% of the homes in August, a decline from 16% in July and 17% in August 2013.

Two of the four regions improved. The Northeast and Midwest increased in August by 4.7% and 2.5% respectively. The South and West declined by 4.2% and 5.1% respectively. All four regions saw their year-over-year levels decline.

The market supply remained the same at 5.5 months. The median house price declined to $219,800, a 4.8% increase over year ago prices. The decline in the median home price points to a slightly looser housing market.

Read the NAR release.

No comments:

Post a Comment

Please read our comment policy before making a comment.