US existing home sales unexpectedly decline in August

Sales of existing US homes unexpectedly declined again in August, according to data from the National Association of Realtors.

Sales fell 0.9% to a seasonally-adjusted annual rate of 5.33m from a downwardly revised 5.38m in July and missing expectations for a 1.1% increase.

Sales are now at their second-lowest pace this year, but still slightly higher than a year ago, up 0.8%.

Meanwhile, the median price for a home rose 5.1% from August 2015 to $240,200.

Total housing inventory at the end of August was down 3.3% to 2.04m existing homes available for sale, and is now 10.1% lower than a year ago. It has dropped year-over-year for 15 straight months.

Lawrence Yun, NAR chief economist, said: "Healthy labour markets in most of the country should be creating a sustained demand for home purchases. However, there's no question that after peaking in June, sales in a majority of the country have inched backwards because inventory isn't picking up to tame price growth and replace what's being quickly sold."

Yun added: "It's very concerning to see that inventory conditions not only show no signs of improving but have actually worsened in recent months from their already suppressed levels a year ago.”

Pantheon Macroeconomics said the data was disappointing but not disastrous.

“Another weak August report. This is a surprise, given the clear message from the pending sales index that actual sales rebounded in August, partially reversing the July drop.”