WASHINGTON -- Home resales fell by 1.3% in July to an annual rate of 5.44 million, below expectations for a slight increase to a 5.55 million pace and the slowest pace since 5.34 million in August 2016, data released by the National Association of Realtors reported Thursday showed.
June sales were revised down modestly to a 5.51 million rate from the originally reported 5.52 million annual rate.
NAR Chief Economist Lawrence Yun told reporters that the market remains very fast, with the median days on market at 30 days. Rather, it is continued supply issues and sharply rising prices that are restraining sales.
The number of housing units available for sale fell 1.0% in July to a total of 1.92 million houses, holding the months supply steady at 4.2 months when the sales decline is considered. This is well below the 4.8 month supply seen a year ago.
Sales declined 14.5% in the Northeast and 5.3% in the Midwest, more than offsetting a 2.2% rise in the South region and a 5.0% rise in the West region.
July's national median price of $258,300 was up 6.2% from a year earlier. Yun noted that wage growth was most recently reported as 2.4% year/year, significantly slower and an indication of the disconnect between home price and wage inflation that is holding back sales.
