Existing home sales decreased 2.0% in August to a seasonally adjusted annual rate of 3.98 million. Month-over-month sales declined in the Northeast, Midwest, and South but were unchanged in the West. Year-over-year sales also fell in the Northeast, Midwest, and West, while remaining unchanged in the South.
“Mortgage rates and home sales move in opposite directions, so it’s not surprising to see a mild dip in home buying activity due to high mortgage rates,” said NAR Chief Economist Dr. Lawrence Yun. “Still, home prices are rising, and existing home sales are actually up 1.6% year-to-date through the first eight months of the year. Homebuying demand, despite higher interest rates, is no doubt being supported by rising wages, which grew 3.1% in August, along with 643,000 net new jobs added since the start of the year. Job creation and wage growth typically drive housing demand.”
Total housing inventory registered at the end of August was 1.62 million units, up 3.2% from July, and up 5.9% from one year ago (1.53 million). Unsold inventory sits at a 4.9-month supply at the current sales pace, up from 4.6-months in both July and one year ago.
The median existing home price for all housing types in August was $429,100, up 1.6% from one year ago ($422,400).
Read the NAR release.
