The Rise of First Time Home Buyers and Fall of Existing Home Sales

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The three straight month increase of overall sales of existing homes ended last month with a dip of 4.8% (a seasonally adjusted annual rate of 5.31 million units).  What’s most strange about the sudden decrease is that the market share of first-time buyers increased to 32% from the 28% it was at in July.

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Looking at the big picture, there is still a year-over-year rise in sales for 11 consecutive months with a 6.2% gain in August compared to August in 2014.  Single family homes sales have decreased 5.3% to a seasonally adjusted annual rate of 4.69 million in August from 4.95 million in July, while it’s still 6.1% higher than the 4.42 million this time last year.

For the 42nd consecutive year-over-year stat, the median prices for homes has increased.  August of this year sat at $228,700 while August of last year was $218,400; an annual appreciation of 4.7%.

The momentum of sales has slowed down to close out the summer, especially in the south and west regions of the US.  Although, sales and overall demand are higher than a year ago with the supply basically the same.

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