Existing-Home Sales Lose Steam in July

By HOM Editor

Fast Fact: Realtors® are reporting diminished buyer traffic because of the scarce number of affordable homes on the market.

Slowed by frustratingly low inventory levels in many parts of the country, existing-home sales lost momentum in July and decreased year-over-year for the first time since November 2015. Only the West region saw a monthly increase in closings in July.

Lawrence Yun, NAR chief economist, says existing sales fell off track in July after steadily climbing the last four months. “Severely restrained inventory and the tightening grip it’s putting on affordability is the primary culprit for the considerable sales slump throughout much of the country last month,” he said. “Realtors® are reporting diminished buyer traffic because of the scarce number of affordable homes on the market, and the lack of supply is stifling the efforts of many prospective buyers attempting to purchase while mortgage rates hover at historical lows.”

[visualizer id=”992″]

Numbers above are in millions.

Adds Yun, “Furthermore, with new condo construction barely budging and currently making up only a small sliver of multi-family construction, sales suffered last month as condo buyers faced even stiffer supply constraints than those looking to purchase a single-family home.”

The median existing-home price for all housing types in July was $244,100, up 5.3 percent from July 2015 ($231,800). July’s price increase marks the 53rd consecutive month of year-over-year gains.


Shares 0

Related Stories

Don’t Let Tax Reform Become A Tax Increase For Homeowners

Tell Congress you oppose any tax reform plan that would weaken the tax incentives for owning a home, such as the Mortgage Interest Deduction, or increase taxes on homeowners by eliminating the state and local tax deduction.

Send Your Message Now



MORE STORIES