WASHINGTON (August 18, 2022) – Existing home sales fell for the sixth straight month in July, according to the National Association of Realtors.®. All four major US regions recorded month-over-month and year-over-year sales declines.
Total Existing Home Sales,1 https://www.nar.realtor/existing-home-sales Completed transactions, which include single-family homes, townhomes, condos and condominiums, rose 5.9% from June to a seasonally adjusted annual rate of 4.81 in July. Year-over-year, sales are down 20.2 percent (6.03 million in July 2021).
“The ongoing decline in sales reflects the strong impact of the 6 percent mortgage rate in early June,” said Laurence Yun, chief economist at NAR. “Home sales are likely to stabilize as home sales have recently fallen to 5%.
Total housing stock2 At the end of July, it was recorded at 1,310,000 units, which is a 4.8% increase from June and unchanged from last year. It sits at a 3.3-month supply, up from 2.9 months in July and 2.6 months in July.
The median existing-home price3 It was $403,800 in July, 10.8% ($364,600) from July 2021, due to price increases in all regions. That’s 125 consecutive months of year-over-year growth, the longest on record.
“We’re seeing a decline in housing in terms of home sales and home construction,” Yun added. “However, it’s not a decline in home prices.” Inventory is tight and prices are rising, with nearly 40% of homes nationwide still fetching their full list price.”
Properties typically stay on the market for 14 days in July, down from 17 days in June and July 2021. The 14 days on the market are the fewest since NR began tracking in May 2011. 82 percent of homes sold in July 2022 were on the market for less than a month.
First-time buyers accounted for 29% of sales in July, down from 30% in June and again in July 2021. NAR 2021 Profile of Home Buyers and Sellers – Released in late 2021.4 – Reported that the annual share of first-time buyers was 34%.
Total currency sales accounted for 24 percent of transactions in July, down from 25 percent in June, but up from 23 percent in July 2021.
Private investors or second-home buyers, which include multiple cash sales, bought 14 percent of homes in July, down from 16 percent in June and 15 percent in July 2021.
Distressed sale5 – Foreclosures and short sales – represented approximately 1% of sales in July, essentially unchanged from June 2022 and July 2021.
According to Freddie Mac, the average commitment rate for a 30-year, standard, fixed-rate mortgage was 5.41% in July, down from 5.52% in June. The average commitment rate across all of 2021 was 2.96 percent.
The Realtor.com® Market Trends report for July shows that the largest year-over-year average price growth was in Miami (+36.2%), Memphis (+32.7%) and Orlando (+28.4%). Compared to last year, Phoenix (+31.8 percentage points), Las Vegas (+28.6 percentage points) and Austin (+27.8 percentage points) saw the largest increase in the share of homes.
Single-family and condo/share sales
Single-family home sales fell to a seasonally adjusted annual rate of 4.31 million in July, down 5.5% from 4.56 million in June and down 19.0% from a year ago. The median single-family home price in July was $410,600, a 10.6 percent increase from July 2021.
Sales of existing condos and condominiums recorded a seasonally adjusted annualized 500,000 units. The median existing condo price was $345,000 in July, an annual increase of 9.9 percent.
“Buying a home is a worthwhile investment that brings the unparalleled combination of security, freedom and success associated with the American dream,” said Leslie Ruda Smith, NAR President.® from Plano, Texas and a broker associate at Dave Perry-Miller Real Estate in Dallas. “Realtors® They serve as consumer champions, providing trusted guidance and insight to help home buyers and sellers achieve their goals.
Regional failure
Existing home sales in the Northeast fell to an annual pace of 620,000 in July, down 7.5% from June and 16.2% from July. The median price in the Northeast was $444,000, an 8.1% increase from last year.
Existing home sales in the Midwest fell 3.3 percent from the previous month to 1,190,000 in July, down 14.4 percent from July 2021. The median price in the Midwest was $293,300, up 7.0% from last year.
Existing home sales in the South fell 5.3 percent in July to an annual rate of 2,130,000, down 19.6 percent from a year ago. The median price in the South was $365,200, a 14.7 percent increase from July 2021.
Western existing home sales rose 9.4% in July to an annual rate of 870,000 compared to the previous month. The median price in the West was $614,900, an 8.1% jump from July 2021.
“The move comes as the more expensive Western region has experienced a sharp decline in sales and a sharp increase in inventory,” Yun said. “Some western markets are likely to see price declines, and this will be good news for buyers who have seen rapid price increases over the past two years.”
National Association of REALTORS® It is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.
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For local information, please contact your local association of REALTORS® For information from local Multiple Listing Services (MLS). Local MLS data is the most accurate source of sales and price data in specific areas, although there may be differences in reporting methods.
Note: NAR’s pending home sales data is scheduled to be released on July 24th, and existing home sales will be released on August 21st. Checkout time is 10 am Eastern.
1 Existing home sales, including single family, townhomes, condos and condominiums, are based on transactional closings from multiple listing services. Changes in sales trends outside the MLS are not captured in the monthly series. NAR uses other sources to evaluate home sales trends, including sales not reported by the MLS, on a regular basis.
Existing home sales, based on closing, differ from the US Census Bureau’s series of new single-family sales based on contract or deposit receipt. Because of these differences, it is not uncommon for each series to move in different directions within a month. Additionally, more than 90% of all existing home sales are based on a large sample of data – 40% of the data from multiple listing services each month – and are typically not subject to a large pre-month. Reviews.
The annualized value of a particular month represents what the actual sales volume would be for a year if that month’s relative velocity were maintained for 12 consecutive months. Seasonally adjusted annual rates are used to report monthly data to identify changes in resales. For example, the rate of house sales is higher in the summer than in the winter, which is mainly due to the difference in weather and family purchases. However, seasonal conditions cannot compensate for unusual weather conditions.
Single-family data collection began monthly in 1968, and condominium data collection began quarterly in 1981. The series merged in 1999 with the launch of Condominium Monthly. Before this time, single-family homes accounted for more than nine out of 10 purchases. Historical comparisons for total home sales prior to 1999 are based on monthly single-family sales combined with quarterly sales of condominiums.
2 Total inventory and monthly supply data are available through 1999, with single-family inventory and monthly supply available through 1982 (prior to 1999, transactions and condominiums accounted for more than 90% of single-family sales, measured on a quarterly basis).
3 The middle price is where half is sold for more and half for less; Averages are more typical of market conditions than average prices, which are distorted by relatively few high-level transactions. The only real comparisons for brokerage prices are due to seasonality in buying patterns over the same period a year ago. Month-to-month comparisons do not compensate for seasonal changes, particularly in household purchasing patterns. Changes in sales mix may distort average price data. Year-ago average and median prices are sometimes revised through an automatic process if additional information is received.
Because condominiums are located in high-cost housing markets, the national median condo/condo price is often higher than the median single-family home price. However, in a certain area, single-family homes outsell condos, according to NAR’s quarterly metro area price reports.
4 The survey results are representative of owner-occupiers and differ from separate monthly findings from NAR REALTORS.® A confidence index that includes all types of buyers. The annual survey represents only first-time home purchases, and excludes investors and vacation home buyers. Results include both new and existing homes.
5 Distressed sales (foreclosures and short sales), days on market, first-time buyers, all-finance transactions and investors are NAR’s monthly survey of REALTORS.® Confidence Index, posted on nar.realtor.
