Existing Home Sales Continue to Decline Amid Supply Shortage

Existing home sales in the US fell for the fifth consecutive month in August, down 0.7% from the previous month, due to high mortgage rates and a worsening supply shortage. Sales are down 15.3% compared to August 2022. The number of homes for sale decreased by 0.9% from the previous month and 14.1% from the same time last year. The decline in inventory has driven prices higher, with the median price of an existing home reaching $407,100, up 3.9% from a year ago. The housing shortage has also increased consumer demand, with homes selling on average in just 20 days. The supply crunch is largely driven by the rise in mortgage rates, which are expected to remain elevated.