The median national existing home price is up 4.6% in August 2018 to $264,800, according to the latest figures.
The rise from $253,100 from a year earlier, was the 78th month in a row of year-over-year increases. That is according to the latest National Association of Realtors (NAR) data.
Sales of single-family homes, townhomes, condominiums and co-ops were steady at a seasonally-adjusted 5.34 million, after four months of falls. They are down 1.5% on the previous year.
Why home price is up 4.6%
NAR chief economist, Lawrence Yun, explains why the national home price is up 4.6%. “With inventory stabilizing and modestly rising, buyers appear ready to step back into the market.
“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.”
Inventor was unchanged with 1.92 million existing homes available for sale, up from 1.87 million a year ago. Unsold inventory is also stable with a 4.3-month supply, the same as last month. It is also up from 4.1 months a year ago.
Properties typically stayed on the market for 29 days in August. This is up from 27 days in July but down from 30 days a year ago. Around half (52%) of homes sold in August were on the market for less than a month.
First-time buyers were responsible for 31% of sales in August. The figure is 1% down in the last month, but the same as a year ago.
All-cash sales were 20% of transactions in August, unchanged from July and a year ago. Individual investors, who account for many cash sales, purchased 13% of homes in August, unchanged from July and down from 15% a year ago.
Distressed sales at new low
Distressed sales – foreclosures and short sales – made up 3% of sales in August- the lowest since NAR began tracking in October 2008 and down from 4% a year ago.
Single-family home sales were at a seasonally adjusted annual rate of 4.75 million in August, unchanged from July, and 1% below the 4.8 million sales a year ago. The median existing single-family home price was $267,300 in August, up 4.9% from August 2017.
Existing condominium and co-op sales were unchanged from last month at 590,000 units in August, down 4.8% from a year ago. The median existing condo price was $244,500 in August, which is up 2.0% from a year ago.
Existing-home sales in the South fell 0.4% 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% from a year ago.