Pace of Existing U.S. Home Sales and Median Price SlipAugust 24, 2017
Having slipped 1.8 percent in June, the pace of existing-home sales in the U.S. slipped another 1.3 percent in July to a seasonally adjusted annual rate of 5.44 million transactions. And while the current rate is still 2.1 percent higher on a year-over-year basis, it’s the slowest pace this year.
At the same time, the median price of the homes that traded hands in July slipped 2.1 percent to $258,300 but remains 6.2 percent higher than at the same time last year ($243,200) as the inventory of existing homes on the market slipped 1.0 percent to 1.92 million and is running 9.0 percent lower on a year-over-year basis.
Out West, the pace of existing-home sales increased 5.0 percent in July to an annual rate of 1.26 million sales, which is 5.0 percent higher versus the same time last year, while the median slipped 1.3 percent to $373,000 which is 7.6 higher, year-over-year.
Comments from Plugged-In Readers
Go West had an awesome song titled “King of Wishful Thinking”, great tune..
The “out West” numbers sound pretty decent: pace of existing-home sales up 5% vs. same time last year, Median $ up a 7.6% YOY
I think overall that affordability is starting to finally be a drag on the market.
Keep in mind that the average 30-year mortgage remains below four percent versus a long-term average of well over six.
Yes, but its been well below six for years now, almost approaching a decade. With banks and wall street unwilling to engage in the same level of creative accounting lending standards as pre-2005, the low interest rate can only benefit so many buyers and its benefited most of those already since we’ve had sub-six rates for so long. In fact I suspect sub-six rates will be around for a while, so long in fact that if they ever got back to six that people will consider that to be a “high” rate and not just a return to the historical average.
The issue with affordability is that few places are available at the lower end of the market. I’m in the process of selling a low end condo in SF and it isn’t something that is affordable to a working family, regardless of low interest rates. Generally a family would need to make $140k a year to afford my condo and that is if they can come up with almost $150k down payment. Not many family’s have a whole year+ earnings available for a downpayment. I was only able to buy the place back in 2007 because I could do 5% down with two interest only loans.
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