U.S. Sales of Existing Homes Unchanged, Trailing Estimates

Sales of previously owned U.S. homes were unchanged in August, indicating buyers are balking at higher prices and leaving more inventory on the market for the first time in three years, a National Association of Realtors report showed Thursday.

Contract closings were unchanged from the prior month at a 5.34m annual rate (est. 5.37m); follows four straight declines. Median sales price increased 4.6% y/y to $264,800. Inventory of available properties rose 2.7% y/y to 1.92m, which was the first increase in more than three years.

Borrowing costs have risen this year and property price gains — while moderating — continue to outpace wages amid a persistent shortage of available listings. Those affordability hurdles are especially burdensome for younger prospective buyers looking for their first homes.