The National Association of Realtors (NAR) released its latest Existing Home Sales report, showing that sales dipped 2% in August to an annual pace of 3.98 million homes. While that was the slowest pace in more than a year, sales are still up 1.6% through the first eight months of the year compared with the same period last year.

One of the more encouraging signs is that inventory continues to grow. The number of homes available for sale increased 3% in August to 1.62 million, nearly 6% higher than a year ago. That gives buyers more choices, especially since inventory normally declines at this time of year.

The median home price fell nearly 2% in August to $429,100, but prices remain 1.6% higher than a year ago. The monthly decline does not mean home values are falling. More lower-priced homes sold last month, which pulled the median price lower.

Homes spent an average of 31 days on the market, about the same as last year. About 16% sold above the asking price, down from 20% a year ago. First-time buyers accounted for 30% of sales, while cash buyers made up 27% and investors 15%.

Bottom line: The housing market is showing signs of becoming more balanced, with more homes available, steady demand, and home prices continuing to post modest gains.

Source : MBS Highway