US existing home sales decline in August

Existing home sales fell in August, with supply remaining constrained and prices accelerating further.

According to the National Association of Realtors, existing home sales dropped 2.0% to a seasonally adjusted annual rate of 5.88m units last month as sales fell in all four regions.

Home resales, which account for the majority of US home sales, were down 1.5% year-on-year, while the average cost of an existing house increased 14.9% year-on-year to $356,700.

There were 1.29m previously owned homes on the market in August, down 13.4% year-on-year and first-time buyers made up 29% of sales, the lowest since January 2019 and down from 30% in July and 33% a year ago.