Existing-home sales barely budge in August as prices keep climbing

NAR reports sales at a 4.0 million annual pace in August; inventory inches higher but affordable homes stay scarce.

Sales of existing homes were essentially flat in August, edging down 0.2% from July to a seasonally adjusted annual rate of 4.0 million. That figure is 1.8% higher than a year earlier.

Total housing stock stood at 1.53 million units in August, down 1.3% from July but up 11.7% from August 2024. Unsold inventory equaled a 4.6-month supply, unchanged from July and up from 4.2 months a year ago.

Prices continue to rise. The median existing-home price was $422,600 in August, up 2.0% from $414,200 a year earlier and marking the 26th consecutive month of year-over-year gains.

Single-family sales slipped 0.3% month-over-month to a 3.63 million annual rate, but remain 2.5% above August 2024. The single-family median was $427,800, up 1.9% year-over-year. Condominium and co-op sales held steady at a 370,000 annual rate, down 5.1% from last year; the condo median was $366,800, up 0.6%.

Regional shifts

Performance varied by region. The Midwest led with a 2.1% monthly gain to a 960,000 annual rate and a median price of $330,500 (up 4.5% year-over-year). The West rose 1.4% month-over-month to 730,000 but was down 1.4% from a year earlier; its median was $624,300 (up 0.6%).

Sales fell in the Northeast (down 4.0% month-over-month to an annual rate of 480,000; median $534,200, up 6.2% year-over-year) and the South (down 1.1% month-over-month to 1.83 million annual rate; median $364,100, up 0.4%).

The REALTORS® Confidence Index showed a median time on market of 31 days, up from 28 days in July and 26 days in August 2024. First-time buyers made up 28% of sales, unchanged from July. Cash transactions were 28% of sales, down from 31% the prior month.

Mortgage costs eased slightly. The average 30-year fixed-rate mortgage was 6.59% in August, down from 6.72% in July (and 6.50% one year ago), according to Freddie Mac.

“Home sales have been sluggish over the past few years due to elevated mortgage rates and limited inventory,” said NAR Chief Economist Lawrence Yun.

Bottom line: cooler mortgage rates and rising inventory are nudging the market, but the gains are uneven. The Midwest and higher-end markets are doing better. Buyers hunting affordable homes still face too little supply. Watch for NAR’s Pending Home Sales Index on September 29 and the next Existing-Home Sales release on October 23 at 10 a.m. Eastern for the latest signals.

Source: Company press release – https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales

Source: Company press release — link