Sales of existing homes declined 2% in August after rising for two consecutive months as buyers balked at soaring prices and the supply of homes on the market remained tight.
An increase in the supply of rental units coupled with a drop in the construction of single-family houses creates roadblocks for home shoppers, said Lawrence Yun, NAR’s chief economist.
An index measuring homebuilder sentiment rose in September, showing a more positive outlook for the new-home market, after three months of declines.
About 59% of home offers written by Redfin agents received at last one other offer, a decline from a revised rate of 62% in July, the real estate brokerage said in a report.
U.S. pending home sales dipped by 1.8% in July, the second consecutive month of declines, as a shortage of properties on the market hampered demand.
Tighter lending standards mean some consumers are being turned down for mortgages for issues that can be remedied.
U.S. home sales rose in July and price gains moderated as more properties came on the market, the NAR report said.
Housing starts fell 7% in July as homebuilders struggled amid labor and supply shortages to meet demand boosted by low mortgage rates.
