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.
![EHSInvYoYAug2020](https://madisonsreport.com/wp-content/uploads/2020/09/EHSInvYoYAug2020-1024x659.png)
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.ย
![EHSInvYoYAug2020](https://madisonsreport.com/wp-content/uploads/2020/09/Screen-Shot-2020-09-22-at-9.40.27-AM-1024x759.png)
Inventory for sale is also fairly constrained, at just 2.8 months’ supply, with the NAR noting thatย 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 Augustโs 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 Julyโs 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.