Existing-Home Sales Decreased to 4.80 million SAAR in August

by Calculated Risk on 9/21/2022 10:13:00 AM

From the NAR: Existing-Home Sales Slipped 0.4% in August

Existing-home sales experienced a slight dip in August, marking the seventh consecutive month of declines, according to the National Association of REALTORS®. Month-over-month sales varied across the four major U.S. regions as two regions recorded increases, one was unchanged and the other posted a drop. On a year-over-year basis, however, sales fell in all regions.

Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, notched a minor contraction of 0.4% from July to a seasonally adjusted annual rate of 4.80 million in August. Year-over-year, sales faded by 19.9% (5.99 million in August 2021).

Total housing inventory registered at the end of August was 1,280,000 units, a decrease of 1.5% from July and unchanged from the previous year. Unsold inventory sits at a 3.2-month supply at the current sales pace – identical to July and up from 2.6 months in August 2021.
emphasis added

Click on graph for larger image.

This graph shows existing home sales, on a Seasonally Adjusted Annual Rate (SAAR) basis since 1993.

Sales in August (4.80 million SAAR) were down 0.4% from the previous month and were 19.9% below the August 2021 sales rate.

The second graph shows nationwide inventory for existing homes.

Existing Home Inventory
According to the NAR, inventory decreased to 1.28 million in August from 1.30 million in July.

Headline inventory is not seasonally adjusted, and inventory usually decreases to the seasonal lows in December and January, and peaks in mid-to-late summer.

The last graph shows the year-over-year (YoY) change in reported existing home inventory and months-of-supply. Since inventory is not seasonally adjusted, it really helps to look at the YoY change. Note: Months-of-supply is based on the seasonally adjusted sales and not seasonally adjusted inventory.

Year-over-year Inventory Inventory was unchanged year-over-year (blue) in August compared to August 2021.

Months of supply (red) was unchanged at 3.2 months in August from 3.2 months in July.

This was above the consensus forecast. I’ll have more later.