U.S. sales of existing homes were unchanged in August, as a shortage of houses priced at less than $250,000 – a level considered to be affordable for the middle class – has become a drag on the real estate market.
The National Association of Realtors said Thursday that homes sold last month at a seasonally adjusted annual pace of 5.34 million. Existing home sales have fallen 1.5 percent during the past 12 months.
In Chattanooga, Realtor-assisted home sales last month totaled 939, down 2.5 percent from a year ago. In the first eight months of 2018, however, local Realtors sold 2.4 percent more homes than a year ago, boosting single-family home sales this year to a record high of 6,847 in the 8-month period.
The median price of Chattanooga homes sold in August was $188,0000, up 6.2 percent from a year ago, according to the Greater Chattanooga Realtors mutiple listing service.
The typical home was on the market last month for only 3.5 months, down nearly 15 percent from a year ago.
“A strong economy is no longer enough to prop up home buying demand,” said Cheryl Young, a senior economist at the real estate company Trulia. “Home buyers are sensing that the market is near or at an apex and many are pulling back to see when prices may finally begin to tip in their favor.”
Mortgage rates rise; 30-year at 4.65 percent
Long-term U.S. mortgage rates are up for the fourth consecutive week, with the key 30-year rate reaching its highest level since May.
Mortgage buyer Freddie Mac said Thursday that the average rate on 30-year, fixed-rate mortgages jumped to 4.65 percent, from 4.60 percent last week. The average rate has increased from 3.83 percent a year ago.
The average rate on 15-year, fixed-rate loans rose to 4.11 percent this week from 4.06 percent last week.
Short-term borrowers did get some relief, however. The average rate for five-year adjustable-rate mortgages edged down to 3.92 percent from 3.93 percent last week.
Under Armour cuts 400 jobs
Under Armour will cut about 400 jobs, part of a restructuring that the sports gear maker announced earlier this year.
The Baltimore company actually began a streamlining last year after explosive sales growth tailed off. That cooling was experienced by Nike as well, with active lifestyle brands like Lululemon luring more consumer dollars while those selling gear for organized sports lost some momentum.
The 400 jobs amount to about 3 percent of the people that Under Armour employs globally. The most recent round of cuts will be completed by the end of March, the company said Thursday.
Under Armour now anticipates restructuring-related charges this year of between about $200 million and $220 million. It previously projected restructuring charges between $190 million to $210 million.
Net worth rises 2.1% in past year
A rising stock market lifted U.S. household wealth to a record $106.9 trillion in the April-June quarter, the culmination of a decade of economic recovery but a gain that is concentrated largely among the most affluent.
The value of Americans’ stock and mutual fund portfolios rose $800 billion last quarter, while home values increased $600 billion, the Federal Reserve said Thursday. Total household wealth is now 2.1 percent higher than in the first quarter, when it was $104.7 trillion.
The Fed’s report came on a day when a wave of buying on Wall Street sent U.S. stocks surging, lifting both the Dow Jones Industrial Average and the Standard & Poor’s 500 to all-time highs.
Household net worth reflects the value of assets like homes, bank accounts and stocks minus debts like mortgages and credit cards. The data aren’t adjusted for inflation or population growth.
NASCAR names new president
NASCAR promoted Steve Phelps to president on Thursday in the latest leadership change for the slumping motorsports series.
Phelps will replace Brent Dewar on Oct. 1. Dewar is stepping down and transitioning to an advisory role next year.
“As a life-long fan of NASCAR, the opportunity to provide league-wide leadership is something I am looking forward to,” Phelps said. “I am confident that the strong team of leaders here at NASCAR and across the industry will accelerate the necessary changes to grow the sport and engage our passionate fans.”
Phelps will oversee all competition and business operations and report to Chairman and CEO Jim France, who replaced his nephew in August following Brian France’s arrest for driving under the influence. The France family owns both NASCAR and International Speedway Corp., which owns many of the tracks used by NASCAR.