Existing home sales declined 0.9% to a seasonally adjusted 5.33 million-unit rate in August from a downwardly revised 5.38 million sales pace the previous month, the National Association of Realtors announced Thursday.
The August rate represents a 0.8% increase from the same month a year ago, and fell short of the median 5.45 million unit pace predicted by economists polled by Thomson Reuters.
"Healthy labor markets in most the country should be creating a sustained demand for home purchases," said NAR chief economist Lawrence Yun. "However, there's no question that after peaking in June, sales in a majority of the country have inched backwards because inventory isn't picking up to tame price growth and replace what's being quickly sold."
"Hopes of a meaningful sales breakthrough as a result of this summer's historically low mortgage rates failed to materialize because supply and affordability restrictions continue to keep too many would-be buyers on the sidelines," he said.
Sales in the regions were mostly lower in August. They were up 6.1% in the Northeast, down 0.8% in the Midwest, off 2.7% in the South, and 1.6% lower in the West.
The median sales price was $240,200 in August, a 5.1% increase from a year ago.
Inventory levels fell 3.3% from the previous month to 2.04 million existing homes, representing a 4.6-month supply at the current pace. Inventory was down 10.1% from the August 2015 level.
