The National Association of Realtors has recently shared that existing home sales have declined for the fourth month in a row. This sales pace has been the slowest in the last two years where only the country’s West region had shown an increase. For the month of July sales of homes fell by 0.7% which brought them 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.”
Inventory had decreased by July’s end by 0.5% which was similar to last year’s numbers. Homes were on the market for an average of 27 days which was an increase from 26 in June, yett down from 30 days as seen last year. Fifty five percent of the homes that were sold in 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.”
In the mortgage arena, loan rates have seen some marginal fluctuation as of late. According to Freddie Mac, the average loan commitment rate for a 30 year conventional loan had actually decreased for the month of July to 4.53% from 4.57% from the month prior.
Regional breakdowns include sales in the Northeast dropping by 8.3%, the Midwest dropped by 1.6%, the South by 0.4% but the West saw an increase of 4.4%.