Nationwide existing-home sales moved lower in August, according to the National Association of Realtors (NAR). Among the four major U.S. regions, sales improved in the Midwest, were unchanged in the Northeast, and slipped in the South and West. All four regions recorded year-over-year sales declines.
Total existing-home sales — completed transactions that include single-family homes, townhomes, condominiums and co-ops — slid 0.7 percent from July to a seasonally adjusted annual rate of 4.04 million in August. Year-over-year, sales fell 15.3 percent, down from 4.77 million in August 2022.
“Home sales have been stable for several months, neither rising nor falling in any meaningful way,” said Lawrence Yun, NAR chief economist. “Mortgage rate changes will have a big impact over the short run, while job gains will have a steady, positive impact over the long run. The South had a lighter decline in sales from a year ago due to greater regional job growth since coming out of the pandemic lockdown.”
Total housing inventory registered at the end of August was 1.1 million units, down 0.9 percent from July and 14.1 percent from one year ago (1.28 million). Unsold inventory sits at a 3.3-month supply at the current sales pace, identical to July and up from 3.2 months in August 2022.
The median existing-home price for all housing types in August was $407,100, an increase of 3.9 percent from August 2022 ($391,700). All four U.S. regions posted price increases.
“Home prices continue to march higher despite lower home sales,” Yun said. “Supply needs to essentially double to moderate home price gains.”
According to the Realtors Confidence Index, properties typically remained on the market for 20 days in August, unchanged from July and up from 16 days in August 2022. Seventy-two percent of homes sold in August were on the market for less than a month.
First-time buyers were responsible for 29 percent of sales in August, down from 30 percent in July and identical to August 2022.
Distressed sales, including foreclosures and short sales, represented 1 percent of sales in August, unchanged from July and the previous year.
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.18 percent as of Sept. 14. That’s up from 7.12 percent the prior week and 6.02 percent one year ago.