Existing-home sales fell more than expected in July, according to the latest data from the National Association of Realtors…(NAR)
- M-O-M: Existing-home sales fell 5.9% to a seasonally adjusted annual rate of 4.81 million. This was the sixth consecutive monthly decline and was worse than economist projections of a 4.7% decline.
- Y-O-Y: Existing-home sales were down 20.2%compared to the same time one year ago.
Slowing but still growing. Home price appreciation continues to slow with existing-home sales up 10.8% year-over-year to $403,800. This is now the 125th month of consecutive y-o-y gains.
- Year-over-year appreciation peaked at 23.6% in May 2021.
Speaking of slowing. Inventory continues to rise but the place is slowing. Total housing inventory registered at the end of July was 1,310,000 units, an increase of 4.8% from June and unchanged from the previous year. Because the pace of sales has fallen unsold inventory now sits at a 3.3-month supply, up from 2.9 months in June and 2.6 months in July 2021. However, time on the market remained at an all-time low of 14 days.
- This was the first time in 5 months that inventory levels month-over-month did not rise double-digits.
Regionally, the South continues to lead the way despite a 5.3% decline from June to a seasonally adjusted annual rate of 2.13M, this represents 44% of all existing-home sales in the country…
- The Midwest took the number two spot with an annual rate of 1.19M (-3.3%) followed by the West at 870k (-9.4%) and the Northeast at 620k (-7.5%).
Double digit growth almost no more. The South was the only region still seeing double-digit home price appreciation in July with median prices up 14.7% to $365.200. The West and Northeast were tied at 8.1% appreciation year-over-year with median home prices at $614,900 and $444,00, respectively. The Midwest saw the least growth at 7.0% with the median home price at $293,300.
Recession talk. Lawrence Yun, NAR chief economist, said parts of the housing market are in a recession. “We’re witnessing a housing recession in terms of declining home sales and home building…However, it’s not a recession in home prices. Inventory remains tight and prices continue to rise nationally with nearly 40% of homes still commanding the full list price.”