The National Association of Realtors is reporting that existing home sales inched up in August, marking two consecutive months of growth. The NAR largely attributed the rise to falling mortgage rates, among other factors, however tight inventory continues to squeeze home prices. Total housing inventory at the end of August was 1.86 million. Unsold inventory was at a 4.1-month supply at the current sales pace with homes remaining on the market for an average of 31 days.
“Sales are up, but inventory numbers remain low and are thereby pushing up home prices…Homebuilders need to ramp up new housing, as the failure to increase construction will put home prices in danger of increasing at a faster pace than income.” Said Lawrence Yun, the NAR’s chief economist.