10 West Hawaii Real Estate | September 28, 2018
Existing-home sales remain flat nationally, mixed results regionally
Existing-home sales remained
steady in August after four
straight months of decline,
according to the National Association
of Realtors®. Sales gains in
the Northeast and Midwest canceled
out downturns in the South and West.
Total existing-home sales, which
are completed transactions that
include single-family homes, townhomes,
condominiums and co-ops,
did not change from July and remained
at a seasonally adjusted rate
of 5.34 million in August. Sales are
now down 1.5 percent from a year
ago (5.42 million in August 2017).
Lawrence Yun, NAR chief economist,
says the decline in existing
home sales appears to have hit a
plateau with robust regional sales.
“Strong gains in the Northeast and
a moderate uptick in the Midwest
helped to balance out any losses in
the South and West, halting months
of downward momentum,” he said.
“With inventory stabilizing and modestly
rising, buyers appear ready to
step back into the market.”
The median existing-home price
for all housing types in August was
$264,800, up 4.6 percent from August
2017 ($253,100). August’s price increase
marks the 78th straight month
of year-over-yea gains.
Total housing inventory at the end
of August also remained unchanged
from July at 1.92 million existing
homes available for sale, and is up
from 1.87 million a year ago. Unsold
inventory is at a 4.3-month supply at
the current sales pace, consistent from
last month and up from 4.1 months a
year ago.
Properties typically stayed on the
market for 29 days in August, up
from 27 days in July but down from
30 days a year ago. Fifty-two percent
of homes sold in August were on the
market for less than a month.
“While inventory continues to
show modest year over year gains,
it is still far from a healthy level and
new home construction is not keeping
up to satisfy demand,” said Yun.
“Homes continue to fly off the shelves
with a majority of properties selling
within a month, indicating that more
inventory – especially moderately
priced, entry-level homes – would
propel sales.”
Realtor.com’s Market Hotness
Index, measuring time-on-the-market
data and listings views per property,
revealed that the hottest metro areas
in August were Midland, Texas; Fort
Wayne, Ind.; San Francisco-Oakland-
Hayward, Calif.; Columbus, Ohio; and
Boise City, Idaho.
According to Freddie Mac, the average
commitment rate for a 30-year,
conventional, fixed-rate mortgage
increased to 4.55 percent in August
from 4.53 percent in July. The average
commitment rate for all of 2017
was 3.99 percent.
“Rising interests rates along with
high home prices and lack of inventory
continues to push entry-level
and first time home buyers out of the
market,” said Yun. “Realtors continue
to report that the demand is there –
that current renters want to become
homeowners – but there simply are
not enough properties available in
their price range.”
First-time buyers were 31 percent
of sales in August, down from last
month (32 percent) but the same as a
year ago. NAR’s 2017 Profile of Home
Buyers and Sellers – released in late
2017 – revealed that the annual share
of first-time buyers was 34 percent.
“Realtors across the country report
that their clients waver about the
decision to list their home; they are
excited by the prospect of receiving
many offers, they are concerned that
they will not be able to find a new
home to purchase,” said NAR President
Elizabeth Mendenhall, a sixthgeneration
Realtor from Columbia,
Missouri and CEO of RE/MAX Boone
Realty. “Unfortunately this fluctuating
view is contributing to the short supply
of homes. Buyers hoping to find
an entry level home in this market
should work with a Realtor and be
prepared to move quickly as listings
sell quickly.”
All-cash sales were 20 percent of
transactions in August, unchanged
from July and a year ago. Individual
investors, who account for many cash
sales, purchased 13 percent of homes
in August, unchanged from July and
down from 15 percent a year ago.
Distressed sales – foreclosures and
short sales – were 3 percent of sales
in August (lowest since NAR began
tracking in October 2008), unchanged
from last month and down from 4
percent a year ago. Two percent of
June sales were foreclosures and 1
percent were short sales.
Single-family and Condo/
Co-op Sales
Single-family home sales were at
a seasonally adjusted annual rate of
4.75 million in August, unchanged
from July, and are 1.0 percent below
the 4.8 million sales pace a year ago.
The median existing single-family
home price was $267,300 in August,
up 4.9 percent from August 2017.
Existing condominium and co-op
sales were at a seasonally adjusted
annual rate of 590,000 units in August
(unchanged from last month), and are
down 4.8 percent from a year ago.
The median existing condo price was
$244,500 in August, which is up 2.0
percent from a year ago.
Regional Breakdown
August existing-home sales in the
Northeast increased 7.6 percent to an
annual rate of 710,000, but are still
2.7 percent below a year ago. The
median price in the Northeast was
$292,800, which is up 2.6 percent
from August 2017.
In the Midwest, existing-home
sales rose 2.4 percent to an annual
rate of 1.28 million in August, but are
still down 0.8 percent from a year
ago. The median price in the Midwest
was $208,500, up 3.4 percent from
last year.
Existing-home sales in the South
decreased 0.4 percent to an annual
rate of 2.23 million in August, up
from 2.19 million a year ago. The median
price in the South was $227,900,
up 3.2 percent from a year ago.
Existing-home sales in the West
dropped 5.9 percent to an annual rate
of 1.12 million in August, 7.4 percent
below a year ago. The median price
in the West was $392,900, up 4.8 percent
from August 2017.
The National Association of Realtors
is America’s largest trade association,
representing 1.3 million members
involved in all aspects of the residential
and commercial real estate industries.