August Sales of Existing Homes Slip as Cash Buyers Pull Back

Sales were down 5.3% year-over-year for the month. August of 2013 posted the second-highest sales level of the year.

The consensus estimate called for sales to reach 5.18 million, according to a survey of economists polled by Bloomberg.

Housing inventory declined 1.7% in August to 2.31 million homes, which is equal to a supply of 5.5 months, flat with supply in July, but down from a total of 2.37 million homes. Unsold inventory is up 4.5% compared with August 2013, when there were 2.21 million existing homes for sale.

According to the NAR, the national median existing home price in August was $219,800, up 4.8% compared with August 2013. Last month marked the 30th consecutive month of rising home prices.

NAR’s chief economist said:

There was a marked decline in all-cash sales from investors. On the positive side, first-time buyers have a better chance of purchasing a home now that bidding wars are receding and supply constraints have significantly eased in many parts of the country.

Sales of single-family homes fell 1.8% from July at a seasonally adjusted annual rate of 4.46 million, down 4.9% compared with August a year ago. Sales of multifamily homes decreased 1.7% year-over-year to an annual rate of 590,000.

Foreclosed and short sales accounted for 8% of August sales, down from 9% in July and down 12% compared with August 2013. Foreclosures sold at an average 14% discount to the August median price, while short sales sold at a discount of 10%.

Existing, non-distressed homes were on the market for an average of 53 days, higher than the July figure of 48 days and sharply higher than the 43 days it took to sell a house in August of 2013. Foreclosed homes were on the market for an average of 53 days and short sales took a median of 135 days to sell.

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