NAFCU's Chief Economist Reports Existing Home Sales Decline Again

Curt Long

"Existing home sales fell for the sixth straight month in July. Outside of the immediate onset of COVID in 2020, July sales levels were the lowest of any month since 2014. Supply remains tight, but conditions are improving modestly as a result of the slower sales pace. Inventory levels reached 3.3 months of sales in July, which is the highest level in over two years but is still about half of normal levels.

Higher borrowing rates and lower demand have resulted in a slower construction pace, which limits trade-up possibilities for current homeowners. Price growth has cooled somewhat but the median price is still up 10.8 percent versus a year ago. Homes on the market sold in an average of 14 days in July, which was unchanged from the prior month and the lowest figure on record dating back to 2011. The housing market is starting to show signs of stabilizing, but improvement is unlikely without a large drop in rates or the appearance of a substantial quantity of inventory."
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- NAFCU Chief Economist and Vice President of Research Curt Long

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