Existing home sales across the country slipped in July for the fourth straight month to the lowest level in more than two years, as sales also declined in three of five zones in NoPho, the I-17 corridor from Norterra to New River [See the full local analysis].
Nationally, sales of existing homes (single-family homes, townhomes, condominiums and co-ops) decreased 0.7 percent from June to July, ending up 1.5 percent below the pace a year ago, according to monthly figures released today by the National Association of Realtors. Rising prices were blamed for the dip.
“Too many would-be buyers are either being priced out, or are deciding to postpone their search until more homes in their price range come onto the market,” said Lawrence Yun, NAR chief economist.
The median price in July was $269,600, up 4.5 percent from July 2017. It was the 77th straight month of year-over-year gains.
Tt the end of July there were 1.92 million existing homes available for sale, roughly the same as a year ago. Unsold inventory is at a 4.3-month supply at the current sales pace (also unchanged from a year ago). Anything less than six months is considered a seller’s market.
“In addition to the steady climb in home prices over the past year, it’s evident that the quick run-up in mortgage rates earlier this spring has had somewhat of a cooling effect on home sales,” Yun said. “This weakening in affordability has put the most pressure on would-be first-time buyers in recent months, who continue to represent only around a third of sales despite a very healthy economy and labor market.”
Existing-home sales in the West rose 4.4 percent month-over-month, but were still 4 percent below a year ago, the NAR reported.