U.S. existing-home sales decrease more than forecast in August

The National Association of Realtors (NAR) announced on Wednesday that the U.S. existing home sales fell 2.0 percent m-o-m to a seasonally adjusted rate of 5.88 million in August from a revised 6.00 million in July (originally 5.99 million).

Economists had forecast home resales dropping to a 5.89 million-unit pace last month.

In y-o-y terms, existing-home sales declined 1.5 percent in August.

According to the report, all four major regions recorded drops on both a m-o-m and a y-o-y basis. The median existing-home price for all housing types in August was $356,700, up 14.9 percent y-o-y. This marked 114 straight months of y-o-y gains.

Single-family home sales came in at a seasonally-adjusted annual rate of 5.19 million in August, being down 1.9 percent m-o-m and down 2.8 percent from one year ago. The median existing single-family home price was $363,800 in August, up 15.6 percent from August 2020. Meanwhile, existing condominium and co-op sales were recorded at a seasonally-adjusted annual rate of 690,000 units in August, down 2.8 percent from July but up 9.5 percent from one year ago. The median existing condo price was $302,800 in August, an annual advance of 10.8 percent.

"Sales slipped a bit in August as prices rose nationwide," noted Lawrence Yun, NAR's chief economist. "Although there was a decline in home purchases, potential buyers are out and about searching, but much more measured about their financial limits, and simply waiting for more inventory."