The National Association of Realtors® reported a decline in existing-home sales for July. Sales increased in the West but decreased in the Northeast, Midwest, and South, which are the four major U.S. regions. Year-over-year sales declines were recorded in all four regions.
The total number of existing-home sales, encompassing finalized transactions for single-family homes, townhomes, condominiums, and co-ops, decreased by 2.2% in July compared to June, reaching a seasonally adjusted annual rate (SAAR) of 4.07 million. In a year-over-year comparison, sales saw a significant decline of 16.6%, down from the 4.88 million recorded in July 2022.
In July, total housing inventory reached 1.11 million units, up 3.7% from June but down 14.6% from a year ago (1.3 million). Unsold inventory stands at a 3.3-month supply, increased from 3.1 months in June and 3.2 months in July 2022. Sales dropped 16.6% year-over-year compared to June 2022, marking the twenty-third consecutive month of such declines. The year-over-year declines are diminishing despite continuous sales drop throughout 2022.
During July, there was an 18.1% decline in sales on a non-seasonally adjusted (NSA) basis, with 372,000 sales as opposed to July 2022’s 454,000. In terms of NSA figures for July, sales were 12.4% above the historic low recorded in July 2010 during the housing crisis, which saw 331,000 sales. The reduction in NSA sales surpassed the market’s shift, albeit by a small margin.
As per the NAR, inventory grew to 1.11 million in July from June’s 1.08 million, marking a 14.6% year-over-year drop compared to July 2022. Supply months rose to 3.3 in July, up from June’s 3.1.
In July, the median price for all housing types hit $406,700, rising by 1.9% from July 2022’s $399,000. While prices climbed in the Northeast, Midwest, and South, the West saw no change. The year-over-year shift in median price reached its zenith at 25.2% in May 2021, reaching a low of -3.0% in May 2023. Currently, prices are up 1.9% year-over-year. Median house prices slipped 0.8% from June to July and are 1.7% lower than the peak in June 2022 (NSA).