US existing home sales surge to 14-year-peak in August

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US existing home sales surge to 14-year-peak in August

On Tuesday, the Chicago, Illinois-based trade association for Northern America had issued a statement saying that the sales of existing homes in the United States had surged to a 14-year-peak last month as the American housing market appears to have pared all of itssses stemmed from the pandemic outbreak in Spring.

Besides, the National Association of Realto lors said in the statement that the US existing home sales had soared by 2.4 per cent last month to breach its highest level since early 2006, while the sales had soared to a seasonally adjusted 6 million units last month.

On a year-on-year basis, US existing home sales had been up by 10.5 per cent, while the number of sales had reached to a pre-pandemic level, however, the Chicago-based trade association had cautioned over a massive supply shortage over the coming months which would highly likely to step up the prices of existing US homes.

US existing homes sales surge by 2.4%, but pace of sales decline

Apart from that, the trade association for the North American real estate industry had also been quoted saying at its Tuesday statement that the rate of sales growth had tumbled substantially in August following over 20 per cent gains in June and July, while the median price for an existing single-family home rose by an average of $15,000 to $315,000 per unit, up about 11.7 per cent compared to the same time a year earlier.

Nevertheless, followed by the release of Tuesday’s existing home sales data, several analysts had raised an alarming bell over a steep upsurge in the prices of existing houses, while a steep decline in mortgage rates, which have been hovering below a historical low of 3 per cent, would likely to create a potential supply crisis and would stoke the prices higher.

In tandem, in latest flashpoint that vindicates analysts’ frets over a caustic supply crisis of available homes for sales, the National Association of Realtor had also added that the number of real estate property listing had been down by 18.6 per cent to a seasonally adjusted 1.49 million units on an annualized basis.