Home Sales Rise as the Limited Number of Properties on the Market Improves
August 27, 2021
The numbers: Existing-home sales edged higher as the inventory of homes for sale grew, giving buyers some more breathing room in a tough market.
Existing-home sales rose 2% to a seasonally-adjusted, annual rate of 5.99 million in July, the National Association of Realtors said Monday. Compared with June 2020, home sales were up 1.5%.
Economists polled by MarketWatch had projected existing-home sales to come in at 5.83 million. The median sales price of an existing home was up 17.8% year-over-year at $359,900, but was below the record set the month prior.
What happened: Existing sales rose in three of the four regions nationally, with the Northeast being the lone region not to see a monthly increase. Still, sales remained even with June’s figures in the Northeast. The Midwest saw the largest gain from June, with a 3.8% uptick, followed by the West (up 3.3%) and the South (up 1.2%).
“Much of the home sales growth is still occurring in the upper-end markets, while the mid- to lower-tier areas aren’t seeing as much growth because there are still too few starter homes available,” said Lawrence Yun, chief economist at the National Association of Realtors, in the report.
Inventory did show signs of improvement in July. The total inventory of properties for sale at the end of July was 1.32 million units, up 7.3% from June.
In July, unsold inventory equated to a 2.6-month supply of homes. A six-month supply of homes is considered to be a balanced market.
Still, the situation buyers face is much more difficult than a year ago. In July, unsold inventory equated to a 2.6-month supply of homes, down from a 3.1-month supply a year earlier. A six-month supply of homes is generally considered to be a sign of a balanced market.