With strained supply levels continuing to control total activity, the National Association of Realtors released a report on Wednesday showing an unexpected decrease in existing home sales in the United States in the month of August.
NAR said existing house sales dropped by 1.7 percent to an annual rate of 5.35 million in August after tumbling by 1.3 percent to a rate of 5.44 million in July.
The ongoing decrease surprised financial experts, who had expected existing house sales to edge approximately an annual rate of 5.46 million.
With the unexpected decline, existing home sales was up to their most affordable yearly rate since striking 5.34 million last August.
“Steady employment gains, gradually rising earnings and lower home mortgage rates generated continual buyer interest all summertime long, however regrettably, not more house sales,” said NAR chief financial expert Lawrence Yun.
“Exactly what’s ailing the housing market and continues to weigh on total sales is the inadequate levels of offered inventory and the upward pressure it’s placing on rates in a number of parts of the nation,” he added. “Sales have been not able to break out since there are simply inadequate houses for sale.”
NAR stated total real estate inventory declined by 2.1 percent to 1.88 million existing homes available for sale at the end of August. Real estate stock is down by 6.5 percent compared with the exact same month a year ago.
The report likewise said the median existing home price in August was $253,500, down 1.8 percent from $258,100 in July but up 5.6 percent from $240,000 in August of in 2015.
The unforeseen decrease in existing house sales came as sales in the South and West plunged by 5.7 percent and 4.8 percent, respectively.
On the other hand, NAR said existing house sales in the Northeast leapt by 10.8 percent. Existing home sales in the West likewise rose by 2.4 percent.
The report also said single-family house sales dropped by 2.1 percent to a rate of 4.74 million, while existing condo and co-op sales climbed up by 1.7 percent to a rate of 610,000.
Next Tuesday, the Commerce Department is arranged to launch a separate report on brand-new home sales in the month of August.
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