Key Highlights
- Sales of existing homes ticked up to 14 year high
- 6M existing homes sold in August, according to National Association of REALTORS®
Wow! Wow!! Wow!!!
Existing home sales ticked up to a 14-year high in August. According to the National Association of REALTORS® (NAR), 6M existing homes were sold in August.
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Aggregate sales of single-family homes, townhomes, condominiums and coop apartments increased +2.4% from July to August, according to NAR. Astoundingly, compared to one year ago, pre-pandemic, last month’s sales were +11% higher.
Lawrence Yun, chief economist with NAR, said, “Home sales continue to amaze, and there are plenty of buyers in the pipeline ready to enter the market.” Yun continued. “Further gains in sales are likely for the remainder of the year, with mortgage rates hovering around 3% and with continued job recovery.”
August home prices were up in every region of the country. Nationally, home prices increased +11.4% and the median existing home price was $310,600.
The number of for-sale properties across the country totaled 1.49M in August, a decrease of -18.6% from August 2019. Inventory fell to a three-month supply in August compared to 3.1 months in July 2020 and to 4 months in August 2019.
Yun believes that record low interest rates are driving home demand. According to a weekly survey by Freddie Mac, potential homebuyers have watched nine record low interest rates since the Federal Reserve committed to buying mortgage bonds in March with the goal of expanding credit access.
The average US rate for a 30-year fixed mortgage increased one basis point to 2.87% during the third week of September, the second lowest rate on record. The 15-year rate fell to the record low of 2.35% during the third week of September as well.
Not to get completely carried away, this recent NAR report of August existing home sales indicates that sales are down -3.2% compared to 2019 levels.
Thanks to the National Association of REALTORS®, Freddie Mac and HousingWire.
Also read: Can Climate Change Change Home Values?, Pandemic NOT Derailing Housing Market, Centers for Disease Control and Prevention via Trump Administration Halt Evictions Nationwide
