Existing home sales rebounded in July, gaining 2.5% to an annual pace of 5.42 million following an upwardly revised 5.29-million-unit annual rate in June. With the gain, existing home sales are trending modestly higher, and are now up 0.6% from July 2018. Regionally, sales were mixed, with the Northeast down 2.9% last month as the Midwest rose 1.6%; the West and the South gained 8.3% and 1.8% respectively. The inventory of homes available for sale decreased 1.6% in July from June to 1.890 million which represents a 4.2-month supply at the current sales pace.
House price gains remain solid but have slowed over the last year. The annual gain in the median price for an existing home rose 4.3% in July to $280,800. NAR chief economist, Lawrence Yun said “Falling mortgage rates are improving housing affordability and nudging buyers into the market.” However, he added that the supply of affordable housing is severely low. “The shortage of lower-priced homes has markedly pushed up home prices.”