Last week, NAR released a summary of existing home sales data showing that August’s existing home sales declined despite having the second fastest sales pace of the year. August marks the first dip after four consecutive months of increased sales, with figures dropping 1.8% from last month and 5.3% from one year ago.
The national median existing-home price for all housing types was $219,800 in August, up 4.8% percent from August 2013.
All regions showed growth in prices except the Northeast, which had a slight drop of 1.8% from last year. The West had the biggest gain in median price at 5.4% from a year ago.
August’s inventory figures increased by 4.5% from a year ago and it will take 5.5 months to move the current level of inventory, slightly below the six months typically seen in a balanced market. It takes approximately 53 days for a home to go from listing to contract in the current housing market.
There are still several positive factors: less investor activity, job creation, low rates, and slower price gains are key components to stabilizing the housing market.