U.S. August Existing Home Sales - Downtrend resumes but may bottom soon
August existing home sales with a 2.5% decline to 3.86m have resumed a downtrend after a 1.5% July increase. This is consistent with most housing sector survey evidence through August but signals for September are more positive, which Fed easing should assist.
Slippage in August existing home sales is consistent with a dip in July pending home sales, and NAHB and MBA survey data for August, though the later surveys are showing more positive signals in early September. A sharp rise in July new home sales still looks difficult to sustain, though housing starts and permits picked up in August.
Three of the four regions saw sales slipping in August after increases in July but the Midwest was unchanged in both months. The median price fell by 1.1% on the month taking yr/yr growth down to 3.1%, the slowest since September 2023, from 3.9% in August.
