Existing Home Sales Drop in August

Existing-home sales dropped 2.0% in August to a seasonally adjusted annual rate of 5.88 million, according to the National Association of Realtors (NAR). Sales fell year-over-year, down 1.5% from August 2020. First-time buyers were responsible for 29% of sales in August, down from 30% in July and 33% in August 2020.

Lawrence Yun, NAR’s chief economist, states that sales decreased in August because of nationwide increases in price. “Although there was a decline in home purchases, potential buyers are out and about searching, but much more measured about their financial limits, and simply waiting for more inventory.”

The total housing inventory in August was 1.29 million units, down 1.5% from July’s inventory and down 13.4% from one year ago (1.49 million). The median home price was $356,700, up 14.9% from August 2020 ($310,400), as prices rose in every region. This marks 114 straight months of year-over-year gains.

Distressed sales represented less than 1% of sales in August, equal to the previous month’s percentage and equal to August 2020.

Read the NAR release.