Existing home sales in the US, which account for the bulk of home sales, jumped +10.5% on a year-on-year basis to a seasonally adjusted annual rate of 6 million units for August. Compared to July, the increase was +2.4% , which the highest level since December 2006 and marked three straight months of gains.
Single-family home sales advanced +2% in August. While multi-family home sales increased +8.6%, they accounted for 10.5% of sales, down from the 12% that is considered the norm for the housing market.
The median price of house sales also increased, rising +11.4% from the same period last year to a record high of US$310,600, marking 102 consecutive year-over-year gains for the monthly data as demand for larger-area living spaces outside of traditional urban centers continues to increase.
Inventory for sale is also fairly constrained, at just 2.8 months’ supply, with the NAR noting that total housing inventory at the end of August totalled 1.49 million units, down -0.7% from July and down -189% from one year ago.
At August’s sales pace, it would take 3 months to exhaust the current inventory, down from 3.1 months in July and 4 months a year ago.
Individual investors or second-home buyers, who account for many cash sales, purchased 14% of homes in August, a small change from July’s figure of 15% and equal to the August 2019 rate of 14%.
All-cash sales accounted for 18% of transactions in August, up from 16% in July 2020 and down from 19% in August 2019.
First-time buyers accounted for 33% of sales in August, down from 34% in July 2020, but up from 31% in August 2019.
Individual investors or second-home buyers, who account for many cash sales, bought 14% of homes in August. All-cash sales accounted for 18% of transactions.