The National Association of Realtors has recently shared that existing home sales have taken a dip for the 4th month in a row. The recent pace has been the slowest in the last two years where only the nation’s West region had shown a slight increase in sales. For the month of July sales fell by 0.7% which brought them to 1.5% below a year ago.
Lawrence Yun, NAR chief economist, says the continuous solid gains in home prices have now steadily reduced demand. “Led by a notable decrease in closings in the Northeast, existing home sales trailed off again last month, sliding to their slowest pace since February 2016 at 5.21 million,” he said. “Too many would-be buyers are either being priced out, or are deciding to postpone their search until more homes in their price range come onto the market.”
Housing inventory levels had diminished by the end of July by 0.5% which was in line with last year’s numbers. Properties remained on the market for an average of 27 days which was an increase from 26 in June, but down from 30 days that was seen last year. Fifty five percent of the homes that sold in the month of July were on the market for less than 30 days.
“Listings continue to go under contract in under month, which highlights the feedback from Realtors® that buyers are swiftly snatching up moderately-priced properties,” said Yun. “Existing supply is still not at a healthy level, and new home construction is not keeping up to meet demand.”
On a regional level, sales in the Northeast dropped by 8.3%, the Midwest dropped by 1.6%, the South by 0.4% but the West saw an increase of 4.4%.
Regarding home loans, mortgage rates have seen some slight movement as of late. According to Freddie Mac, the average commitment rate for a 30 year conventional loan had actually gone down for the month of July to 4.53% from 4.57% from the month prior.