Existing-Home Sales Increase Following Months of Falling Activity

After recent declines in sales activity in the existing-home market, purchases in that sector increased by 2% month-over-month in July to a seasonally adjusted annual rate of 4 million, according to the National Association of Realtors’ Existing-Home Sales Report. On a year-over-year basis, sales increased by 0.8%.

Sales activity increased in most regions of the U.S. month-over-month, except for in the Midwest where they declined by 1.1%. Comparatively, the Northeast saw a 8.7% increase in sales in July.

"The ever-so-slight improvement in housing affordability is inching up home sales," said NAR Chief Economist Lawrence Yun. "Wage growth is now comfortably outpacing home price growth, and buyers have more choices. Condominium sales increased in the South region, where prices had been falling for the past year."

"Near-zero growth in home prices suggests that roughly half the country is experiencing price reductions. Overall, homeowners are doing well financially. 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," Dr. Yun continued.