Existing Home Sales – October Report
Last Updated: 10/5/2009

Home Sales Pace

Sales of existing U.S. homes fell in August from the previous month, according to the National Association of Realtors, as some committed buyers dropped out of their contracts and a rising number of signed contracts created a backlog, making for longer closing periods.

“Home sales retrenched from a very strong improvement in July but continue to be much higher than before the stimulus,” said NAR chief economist Lawrence Yun. “The first-time buyer tax credit is having the intended impact of bringing buyers into the market, allowing them to take advantage of very favorable affordability conditions.”

Total sales decreased by 2.7 percent in August to a seasonally adjusted rate of 5.10 million units, down from 5.24 million in July, yet the latest numbers are 3.4 percent above the level from one year earlier.

The national median price for existing homes decline for the second straight month, falling to $177,700 from $178,400 in July. The new median price is down 12.5 percent from August 2008.

The NAR defines existing homes as all previously-owned single-family homes, townhouses, condominiums, and co-ops. The group “seasonally adjusts” the sales numbers to factor in things like inclement weather, school sessions, winter holidays, etc. to smooth out the trends. The NAR also describes its sales data based on an annual pace. The monthly figure represents the total number of housing units that would be sold in one year if the current rate were to continue unchanged.

Sales Pace by Region

Sales trends by region reversed in August, with all areas experiencing declines except for the West. In the West sales picked up by 2.7 percent from July to 1.16 million units and on a yearly basis sales there were up 7.4 percent.

The Northeast saw sales drop by 2.2 percent to 930,000 units in August, but sales were still up 5.8 percent over the previous year.

Sales in the South fell 3.3 percent to 1.89 million units; in a year-over-year comparison sales were up 1.6 percent.

The greatest drop in sales was in the Midwest with a 6.6 percent fall to 1.14 million units. Sales are unchanged in volume from the same time last year.

Home Prices

The median home price, the point at which half of all homes are sold for more and half are sold for less, dropped in all regions but the West, as well. The price increased to $220,500 in the West, up from $217,900 in July, but it is still down 12.2 percent from last year.

The median price in the South dropped to $157,400 from $162,100 and is down 11 percent from August 2008.

In the Midwest, the price rose to $155,900 from $149,900 in July. In a year-over-year comparison, the price is off 10.4 percent.

The Northeast region’s median price declined the most of any area, dropping more than $10,000 to $241,100 from $251,500. Since last year, the price has fallen 10.5 percent.

Inventory

Total housing inventory fell 10.8 percent in August to 3.62 million units available, down from a revised 4.06 million units in July. At the current sales pace, the homes on the market now represent an 8.5-month supply, down 8.6 percent from the 9.3-month supply of the previous month.

Next Report

Data for September existing home sales, prices, and inventory will be available at the end of October.

Month-to-Month Appreciation Graphs, regional and nationwide – click here.