US home sales off 1.7 pct., hurt by Harvey and low supply
WASHINGTON — U.S. home sales fell 1.7 per cent in August, pulled down by the effects of Hurricane Harvey and a worsening shortage of available properties.
The National Association of Realtors said Wednesday that sales of existing homes sank last month to a seasonally adjusted annual rate of 5.35 million. Would-be homebuyers are being limited by a decline in the number of sales listings. The shortage has become a drag on sales and has caused prices to surge — factors that limit the strong job market’s benefit to the housing industry.
“Given that job growth has been steady and demand is still strong, there remains fundamental support for the housing market,” said Jennifer Lee, a senior economist at BMO Capital Markets.
But, she added, the shortage of available homes will hamper sales.