Existing-Home Sales Increase 2.0% in July

(Chart courtesy of National Association of Realtors.)

Existing-home sales increased by 2.0% in July, the National Association of Realtors reported Thursday.

NAR’s Existing-Home Sales Report said month-over-month sales increased in the Northeast, South and West, and fell in the Midwest. On a year-over-year basis, sales rose in the South, Northeast and Midwest, and fell in the West.

Lawrence Yun, Chief Economist with NAR, noted an “ever-so-slight” improvement in housing affordability is causing home sales to inch up. “Wage growth is now comfortably outpacing home price growth, and buyers have more choices,” he said.

In its analysis, Wells Fargo Economics called the housing market stuck in stasis. “Although the bounce-back from June’s decline was an encouraging sign that activity is not declining sharply, the trend in sales has essentially moved sideways this year as affordability conditions remain challenging and the macroeconomic backdrop weakens,” the firm said.

Yun noted that near-zero growth in home prices suggests that roughly half the country is experiencing price reductions. “Overall, homeowners are doing well financially,” he said. “Only 2% of sales were foreclosures or short sales–essentially a historic low. The market’s health is supported by a cumulative 49% home price appreciation for a typical American homeowner from pre-COVID July 2019 to July this year.”