Sales of previously owned U.S. homes declined to a one-year low in August as affordability continued to hamper demand and Hurricane Harvey caused a slump in Houston-area purchases, a National Association of Realtors report showed Wednesday.

 

 

Highlights of Existing-Home Sales (August)
  • Contract closings fell 1.7% m/m to a 5.35m annual rate (est. 5.45m)
  • Purchases in Houston decreased 25% y/y; excluding Harvey's effect, sales would have been "flat," according to NAR's chief economist
  • Median sales price rose 5.6% y/y to $253,500
  • Inventory of available properties decreased 6.5% y/y to 1.88m, marking the 27th consecutive year-on-year decline

 

Key Takeaways

While decreased purchase activity in Houston helped push down the sales count nationwide, and may continue to do so in coming months, residential real estate is struggling to improve because of declining affordability, NAR said in the report. 

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