August Existing Home Sales: Continuing to Run Hot

• August existing home sales rose 2.4% from July and 10.5% from a year ago, to 6 million (SAAR) -- the highest level since December 2006, according to the National Association of Realtors.
• The median existing-home price for all housing types in August was $310,600, up 11.4% from August 2019. Existing home prices have risen year-over-year for 102 straight months.
• Total housing inventory stood at 1.49 million in August, down 0.7% from July and 18.6% from August 2019.

As the weather cools, the housing market is continuing to run incredibly hot, even in the face of the pandemic. Sales of existing homes last month topped an already strong July, and were the strongest recorded in any August since 2006. Even with much of the economy on pause or operating at limited capacity, home shoppers are more than making up for time lost during the pandemic’s initial months and are snatching up homes virtually as soon as they hit the market. Historically low mortgage interest rates are helping buyers stretch their budgets, keeping monthly payments low even as home price growth accelerates. And sales volumes might be even higher if record-low levels of inventory weren't working to throttle the market and prevent still more would-be buyers from finding the home that's right for them. Pent up demand that pushed delayed spring sales into the summer could be inflating recent numbers somewhat, but there’s no question that demand for housing -- high even before the pandemic -- has stayed at a boil. Sales volume could begin to taper in late 2020, but given current conditions, it’s unlikely to diminish too much.