The National Association of Realtors is reporting that existing home sales were down 2.5% in July, which the NAR says is a positive reversal after total sales were down slightly in June. According to their release, total existing-home sales (completed transactions that include single-family homes, townhomes, condominiums and co-ops) were up 2.5% from June to a seasonally adjusted annual rate of 5.42 million in July. Total housing inventory at the end of July was 1.89 million, representing a 4.4-month supply at the current sales pace.
“Falling mortgage rates are improving housing affordability and nudging buyers into the market,” said Lawrence Yun, NAR’s chief economist. However, he added that the supply of affordable housing is severely low. “The shortage of lower-priced homes have markedly pushed up home prices.”