It was the first time since late 2015 that sales have declined for two months in a row. There have been only five months in the past 35 years (the data series starts in June 1982) when there were fewer single-family homes on the market.
Existing home sales fell in July, declining 1.3 percent from June to 5.44 million units at a seasonally adjusted annual rate (SAAR) according to the National Association of Realtors (NAR). It was the second consecutive month of declining sales and the first time since late 2015 that sales have declined for two months in a row. The drop comes on top of downward revisions to June sales, which were revised from 5.52 million units to 5.51 million units (both SAAR). Since last fall, existing home sales have stagnated as for-sale inventory has moved steadily downward for 26 consecutive months and prices have posted steady annual gains of 4 percent to 8 percent.
Regionally, modest month-over-month gains in existing home sales in the West and South were more than offset by sharp drops in sales in the Northeast and Midwest. The Midwest has posted flat or declining sales for four consecutive months now.
For-sale inventory – the number of homes (single-family homes and condos/coops) on the market – fell 2.2 percent in July to 1.78 million units (SAAR) and is down 8.9 percent over the year. The number of homes on the market has now been declining year-over-year since June 2015, and there are fewer homes on the market than at any point since the data series began in January 1999. Looking only at single-family homes, for which a longer time series is available, there have been only five months in the past 35 years (the data series starts in June 1982) when there were fewer single-family homes on the market. The number of single-family homes for-sale fell 1.8 percent in July to 1.57 million units (SAAR) and is down 9.1 percent compared to last July.
Amid stagnant sales and falling inventory, the median price of existing homes sold in July touched a new all-time high, though just barely. The median seasonally-adjusted price of existing homes sold in July was $244,800, up $100 (0.04 percent) from June and up 6.4 percent from last July.
