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Existing Home Sales Decline 2% a Relatively Poor Year in the Making

Existing home sales dipped for the 5th time in 7 months this year.
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Existing Home Sales Detail 2021-08

Existing-Home Sales Dip 2.0% in August

It what has been a see-saw year for sales, mostly lower, the NAR reports Existing-Home Sales Recede 2.0% in August

  • Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 2.0% from July to a seasonally adjusted annual rate of 5.88 million in August. 
  • Year-over-year, sales dropped 1.5% from a year ago (5.97 million in August 2020).
  • The median existing-home price for all housing types in August was $356,700, up 14.9% from August 2020 ($310,400), as prices increased in each region. This marks 114 straight months of year-over-year gains.
  • Properties typically remained on the market for 17 days in August, unchanged from July and down from 22 days in August 2020. Eighty-seven percent of homes sold in August 2021 were on the market for less than a month.
  • Single-family home sales decreased to a seasonally adjusted annual rate of 5.19 million in August, down 1.9% from 5.29 million in July and down 2.8% from one year ago. The median existing single-family home price was $363,800 in August, up 15.6% from August 2020.
  • Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 690,000 units in August, down 2.8% from 710,000 in July but up 9.5% from one year ago. The median existing condo price was $302,800 in August, an annual increase of 10.8%.

Poor 2021 Relative to Second Half Surge of 2020

Existing Home Sales 2021-08

Sales are still above the pre-pandemic levels, but the trend, despite low interest rates is not favorable.

Houses are simply too expensive. This inflation does not show up in the CPI, nor do stock market nor do junk bond bubbles.

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The Real CPI

The CPI factoring in housing and medical is much greater than the reported CPI. I will publish an alternate CPI that factors in housing when the next Case-Shiller home price data is released.

My last report had year-over-year CPI at 8.57%. For discussion, please see Housing Adjusted Real Interest Rates Sink to a Record Low -8.5 Percent.

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