Existing-home sales slipped 2.2 percent to a seasonally adjusted rate of 4.91 million units last month, down from 5.02 million in July and 10.7 percent lower than the 5.50 million-unit pace in August 2007.
National Association of Realtors President Richard F. Gaylord blamed the slowdown squarely on tight lending conditions, which he claims made it more difficult for even creditworthy borrowers to obtain financing.
But with so much uncertainty in the air, it’s likely many potential homebuyers are still standing on the sidelines, waiting for a clear sign of direction.
Regionally, existing-home sales were down on a year-over-year basis in the South, Midwest, and Northeast, but up 4.9 percent in the West.
That could be attributed to the fact that the median sales price in the West has fallen 23.9 percent from a year ago to $251,600.
But as NAR chief economist Lawrence Yun explained, the increase has been driven primarily by deeply discounted foreclosure sales.
Total housing inventory fell seven percent from July to 4.26 million units in August, representing a 10.4 month supply at the current sales pace.
The national median existing-home price fell to $203,100 last month, down 9.5 percent from a year earlier when it stood at $224,400.
(photo: artnow)
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