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Sales of Houses Slip as Investors Withdraw
WASHINGTON -- After four consecutive months of gains, sales of existing houses slipped in August as investors paying in cash retreated from the market, the National Association of Realtors reported Monday. The increases in sales in the Northeast and Midwest were more than offset by declines in the South and West.
Total existing-house sales -- defined as completed transactions of single-family houses, townhouses, condominiums and co-ops -- fell 1.8% to a seasonally adjusted annual rate of 5.05 million from a slight downwardly revised 5.14 million in July, the trade association said. Sales are at the second-highest pace of 2014, but remain 5.3% below the 5.33 million-unit level from last August, which in 2013 was also the second-highest level of sales.
In the Midwest, sales of existing houses rose 2.5% to an annual level of 1.24 million, but remain 3.9% below August 2013. The median price was $173,800, up 5.9% from a year ago.
The median price of existing houses of all types was $219,800, 4.8% above August 2013. This marks the 30th consecutive month of year-over-year price gains.
Inventory of houses for sale at the end of August declined 1.7% to 2.31 million, a 5.5-month supply at the current pace of sales. However, unsold inventory is 4.5% higher than a year ago when there were 2.21 million houses available for sale.
All-cash sales made up 23% of transactions in August, dropping for a second consecutive month (29% in July) and represented the lowest overall share since December 2009 (22%).
The percent share of first-time buyers remained unchanged in August from July at 29%. First-time buyers have constituted fewer than 30% of all buyers in 16 of the past 17 months.
Distressed homes -- foreclosures and short sales – made up 8% of sales in August sales, remaining in the single-digits for the second straight month and down from 12% a year ago.
Properties tended to stay on the market longer in August (53 days) than July (48 days) and a year ago (43 days).
Published by The Business Journal, Youngstown, Ohio.
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