The National Association of Realtors (NAR) will releases its Existing Home Sales Report on September 18. The July report showed a 2.5% increase and an annual increase of 0.6%.
“Falling mortgage rates are improving housing affordability and nudging buyers into the market,” said Lawrence Yun, NAR’s Chief Economist.
Yun, however, noted that the inventory for affordable housing is “severely low,” and that shortage has caused home prices to rise.
Housing inventory for the month fell to 1.89 million from 1.92 in June, and a year-over-year drop of 1.6%. Unsold inventory is currently at a 4.2-months supply, a slight decline from June’s supply of 4.4 months.
The NAR stated that of the home sold in 2018 that were purchased in 2012 in larger metro areas, the lower half of the market increased by more than 100% in the following markets: Atlanta-Sandy-Springs-Roswell, Georgia (165%); Denver-Aurora-Lakewood, Colorado (103%); Miami-Fort Lauderdale, Florida (119%); and Tampa-St. Petersburg-Clearwater, Florida (125%).
Average-home prices for the upper half of the market in the same metros in 2012 grew at a slower pace when sold in 2018.
“Clearly, the inventory of moderately-priced homes is inadequate and more home building is needed,” Yun said . “Some new apartments could be converted into condominiums thereby helping with the supply, especially in light of new federal rules permitting a wider use of Federal Housing Administration (FHA) mortgages to buy condo properties.”
According to the report, the median existing-home price for all housing types in July was $280,800, which is a 4.3% increase from last July and the 89th-consecutive month of annual gains.
The NAR stated that first-time buyers were responsible for 32% of all sales in July—a decline from 35% in June but unchanged when compared to July 2018.
Here's what else is happening in The Week Ahead:
NAHB/Wells Fargo Housing Market Index (September 17)
ATTOM pre-foreclosure/foreclosure data (September 17)
MBA Mortgage applications survey (September 17)
Census Bureau’s New Residential Construction Survey (September 17)