US existing home sales decreases by 2pc in August.
US existing home sales decreased by 2% in August, according to the National Association of Realtors, with month-on-month sales holding steady in the West and declining in the Northeast, Midwest and South.
Source: Sharecast
On an annualised basis, sales were unchanged in the South and declined in the Northeast, Midwest and West.
"Mortgage rates and home sales move in opposite directions, so it's not surprising to see a mild dip in home buying activity due to high mortgage rates,” said NAR Chief Economist Lawrence Yun.
"Still, home prices are rising, and existing home sales are actually up 1.6% year-to-date through the first eight months of the year. Homebuying demand, despite higher interest rates, is no doubt being supported by rising wages, which grew 3.1% in August, along with 643,000 net new jobs added since the start of the year. Job creation and wage growth typically drive housing demand."
Yun added that number of months it would take to exhaust the total inventory at the current sales pace had grown to 4.9 months' supply — the highest level seen in over ten years.
"The ample supply of homes for sale on the market is giving homebuyers better opportunities to negotiate," he concluded.
Reporting by Iain Gilbert at Sharecast.com
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