CHICAGO, Illinois: Housing sales in the United States fell in August amid sustained supply shortages, with indications that the housing price spike is drawing to a close.
Nonetheless, persistently steep housing prices have deterred potential buying parties.
"The recent moderation in existing home sales reflects some easing of the buying frenzy that carried over into early 2021," according to Wells Fargo economist Mark Vitner.
"The frantic race for space sent prices soaring. We continue to expect the housing market to move back into balance over the next couple of years," Vitner stated, as quoted by Reuters.
Current housing sales plummeted two percent to a seasonally adjusted annual rate of 5.88 million in August. A drop in region-wise sales reportedly occurred, with a three-percent decrease in the southern United States.
Meanwhile, a Reuters survey of economists projected a drop in sales to 5.89 million in August.
Additionally, sales of single-family residences declined 1.9 percent, whereas sales of condominiums and housing cooperatives plunged 2.8 percent. The sales dip overlapped with the recently changed customer outlook on purchasing homes.
The reselling of houses made up the majority of housing sales in the United States, though this category also plunged 1.5 percent year-on-year. A distortion in the yearly comparability was attributed to the COVID-19-spurred sales spike in August 2020. A 16-percent increase in sales had until now been recorded in 2021, from the corresponding period last year.