Existing-Home Sales Disappoint In August, Median Price Drops

Existing-Home Sales Disappoint In August, Median Price Drops

After two straight monthly gains (better than expected and bucking the trend in new- and pending-home-sales), analysts expected existing home sales to tumble in August and they were right. Existing home sales fell 2.0% MoM in August – worse than the 1.7% drop expected (exaggerated by an upward revision in July).

This drop pushed the year-over-year change in existing home sales negative for the first time since June 2020

Source: Bloomberg

“Clearly the home sales are settling down but above pre-pandemic conditions,” Lawrence Yun, NAR’s chief economist, said on a call with reporters.

The SAAR dropped back, but remains just above pre-COVID levels…

Source: Bloomberg

Sales of million-dollar-plus homes are up 40% YoY…

…but the median sale price increase of 14.9% was lowest since January (and the median price actually dropped)…

Yun said Realtors are seeing “less intensive multiple offers” for available properties. In August, there were 3.8 offers on a typical home, down from 4.5 a month earlier.

All four regions in the U.S. posted sales declines last month, led by a 3% drop in the South which dominated sales as usual…

Finally, we remind readers that homebuyer sentiment and homebuilder sentiment could not possibly be more divergent…

Source: Bloomberg

Can Jay Powell afford to upset those homebuilders? What do homeowners know?

Tyler Durden
Wed, 09/22/2021 – 10:07

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