Existing home sales rise for second-straight month

Median existing home price up 18% YOY

National /
Aug.August 23, 2021 01:05 PM
Single-family homes, co-ops, condominiums and townhouses saw sales rise by 2 percent from June to a seasonally adjusted rate of about 6 million. (iStock)

Single-family homes, co-ops, condominiums and townhouses saw sales rise by 2 percent from June to a seasonally adjusted rate of about 6 million. (iStock)

Yet again, rising home prices had nothing on existing home sales.

Sales of existing homes rose for the second consecutive month in July, according to the latest monthly report from the National Association of Realtors. Single-family homes, co-ops, condominiums and townhouses saw sales rise by 2 percent from June to a seasonally adjusted rate of about 6 million. That’s 1.5 percent higher than the same period last year.

Inventory of homes was at 1.32 million at the end of July, down 12 percent year-over-year but up 7.3 percent from the end of June. At the current pace of sales, it would take 2.6 months to sell all unsold inventory, compared to 3.1 months during the same period last year.

More homes on the market would lead to fewer bidding wars, said NAR chief economist Lawrence Yun.

“Much of the home sales growth is still occurring in the upper-end markets, while the mid- to lower-tier areas aren’t seeing as much growth because there are still too few starter homes available,” Yun said.

The median existing home price in July was $359,900, a year-over-year increase of 17.8 percent. Yun said it was unlikely that prices would drop in the near term, but that there was a chance “they will level off as inventory continues to gradually improve.”

Buyers who are priced out are putting upward pressure on rental rates, he added.

Existing home sales saw the biggest annual increase in the Northeast, where roughly 740,000 homes sold for the second straight month, a 12.1 percent year-over-year rise. The region also saw the highest jump in median home prices, up 23.6 percent from a year ago to $411,200.

Houses were on the market for just 17 days, according to the report.





    Related Articles

    arrow_forward_ios
    The price of a new home in China’s largest cities fell for the first time since 2015
    New home prices in China’s largest cities fall for first time since 2015
    New home prices in China’s largest cities fall for first time since 2015
    From left: Francisco Llado, Gil Dezer, Amir Korangy, Paulo Bacchi, Edgardo Defortuna, Jay Parker, Daniel de la Vega (Artefacto, Getty)
    Is Miami’s residential architecture overplayed? No way!: TRD panel at Artefacto
    Is Miami’s residential architecture overplayed? No way!: TRD panel at Artefacto
    Single-family rentals are increasingly seen as a more realistic alternative to ownership, given the hot housing market and income inequality. (iStock)
    Single-family rentals soaring in hot housing market
    Single-family rentals soaring in hot housing market
    (Getty)
    Manhattan buyers shun fixer-uppers
    Manhattan buyers shun fixer-uppers
    Sheldon Solow and the Hamptons estate (Getty, Douglas Elliman)
    Sheldon Solow’s Hamptons home gets $10M price cut
    Sheldon Solow’s Hamptons home gets $10M price cut
    Investors home purchases rose to 15 percent in the second quarter, a year-over-year increase of 3.9 percentage points. (iStock)
    Investors take bigger bite of US housing, and pay less
    Investors take bigger bite of US housing, and pay less
    Chicago Bulls’ DeRozan buys mansion from Michael Jordan’s ex-wife at discounted $4.5M
    Chicago Bulls’ DeRozan buys mansion from Michael Jordan’s ex-wife at discounted $4.5M
    Chicago Bulls’ DeRozan buys mansion from Michael Jordan’s ex-wife at discounted $4.5M
    Existing home sales were on the upswing in September following a slight dip in August. (iStock)
    Existing home sales rebound in September, rising by 7%
    Existing home sales rebound in September, rising by 7%
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...