Median home price in the South was $366,100, up 3.2% from Aug. 2022, 30-year fixed-rate mortgage averaging 7.18%
The Upper Cumberland – Home sales in the south as a whole decreased slightly in August to 1.1% from July to an annual rate of 1.84 million in August, a decrease of 12.4% from one year ago, according to the National Association of Realtors (NAR).
That is following the national trend, despite Putnam County luxury home sales seemingly improving with more expensive homes selling at a greater rate in the area. The median home price in the South was $366,100, up 3.2% from Aug. 2022.
Key Highlights of the NAR report:
- Existing-home sales retreated 0.7% nationally in August to a seasonally adjusted annual rate of 4.04 million. Sales dropped 15.3% from one year ago.
- The median existing-home sales price climbed 3.9% from one year ago to $407,100 – the third consecutive month the median sales price surpassed $400,000.
- The inventory of unsold existing homes dipped 0.9% from the prior month to 1.1 million at the end of August or the equivalent of 3.3 months’ supply at the current monthly sales pace.
Existing-home sales in other parts of the country dropped in August, according to the NAR.
Among the four major U.S. regions, sales improved in the Midwest, were unchanged in the Northeast, and slipped in the South and West. All four regions recorded year-over-year sales declines. Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, slid 0.7% from July to a seasonally adjusted annual rate of 4.04 million in August.
Year-over-year, sales fell 15.3% (down from 4.77 million in Aug. 2022).
“Home sales have been stable for several months, neither rising nor falling in any meaningful way,” said NAR Chief Economist Lawrence Yun. “Mortgage rate changes will have a big impact over the short run, while job gains will have a steady, positive impact over the long run. The South had a lighter decline in sales from a year ago due to greater regional job growth since coming out of the pandemic lockdown.”
Total housing inventory registered at the end of August was 1.1 million units, down 0.9% from July and 14.1% from one year ago (1.28 million). Unsold inventory sits at a 3.3-month supply at the current sales pace, identical to July and up from 3.2 months in Aug. 2022.
The median existing-home price[3] for all housing types in August was $407,100, an increase of 3.9% from Aug. 2022 ($391,700). All four U.S. regions posted price increases.
“Home prices continue to march higher despite lower home sales,” Yun said. “Supply needs to essentially double to moderate home price gains.”
All-cash sales accounted for 27% of transactions in August, up from 26% in July and 24% in Aug. 2022. Individual investors or second-homebuyers, who make up many cash sales, purchased 16% of homes in August, the same share as in July and one year ago. Distressed sales, foreclosures and short sales represented 1% of sales in August, unchanged from last month and the previous year.
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.18% as of Sept. 14, up from 7.12% the prior week and 6.02% one year ago. Single-family home sales waned to a seasonally adjusted annual rate of 3.6 million in August, down 1.4% from 3.65 million in July and 15.3% from the previous year.
The median existing single-family home price was $413,500 in August, up 3.7% from last year.
Regional Breakdown
- At an annual rate of 480,000 in August, existing-home sales in the Northeast were unchanged from July but down 22.6% from Aug. 2022.
- The median price in the Northeast was $465,700, up 5.8% from one year ago.
- In the Midwest, existing-home sales increased by 1% from the previous month to an annual rate of 970,000 in August, down 16.4% from the prior year. The median price in the Midwest was $305,300, up 6.8% from Aug. 2022.
- In the West, existing-home sales slumped 2.6% from the previous month to an annual rate of 750,000 in August, down 15.7% from the prior year. The median price in the West was $609,300, up 1% from Aug. of last year.
