Existing-home sales fell in August, according to the National Association of Realtors. Three out of four major U.S. regions posted sales declines while the Midwest registered no change. Year-over-year, sales slipped in three regions but remained stable in the Northeast.
Total existing home sales — completed transactions that include single-family homes, townhomes, condominiums and co-ops — descended 2.5 percent from July to a seasonally adjusted annual rate of 3.86 million in August. Year-over-year, sales retracted 4.2 percent (down from 4.03 million in August 2023).
“Home sales were disappointing again in August, but the recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in future months,” said NAR Chief Economist Lawrence Yun. “The home-buying process, from the initial search to getting the house keys, typically takes several months.”
Total housing inventory registered at the end of August was 1.35 million units, up 0.7 percent from July and 22.7 percent from one year ago (1.1 million). Unsold inventory sits at a 4.2-month supply at the current sales pace, up from 4.1 months in July and 3.3 months in August 2023.
“The rise in inventory — and, more technically, the accompanying months’ supply — implies homebuyers are in a much-improved position to find the right home and at more favorable prices,” Yun said. “However, in areas where supply remains limited, like many markets in the Northeast, sellers still appear to hold the upper hand.”
The median existing-home price for all housing types in August was $416,700, up 3.1 percent from one year ago ($404,200). All four U.S. regions posted price increases.
According to the monthly Realtors Confidence Index, properties typically remained on the market for 26 days in August, up from 24 days in July and 20 days in August 2023.
First-time buyers were responsible for 26 percent of sales in August, matching the all-time low last seen in November 2021, and down from 29 percent in both July 2024 and August 2023.
All-cash sales accounted for 26 percent of transactions in August, down from 27 percent in both July and one year ago.
Individual investors or second-home buyers, who make up many cash sales, purchased 19 percent of homes in August, down from 13 percent in July 2024 and 16 percent in August 2023.
Distressed sales — foreclosures and short sales — represented 1 percent of sales in August, unchanged from July and the previous year.