Existing home sales fell 2.5% in August to a seasonally adjusted annual rate of 3.86 million. Three out of four major U.S. regions posted sales declines while the Midwest registered no change, according to the National Association of Realtors. Sales also fell 4.2% from the previous year (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 homebuying 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% from July and 22.7% 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 median existing-home price for all housing types in August was $416,700, up 3.1% from one year ago ($404,200). All four U.S. regions posted price increases.
Distressed sales – foreclosures and short sales – represented 1% of sales in August, unchanged from last month and the previous year.
Read the NAR release.
