Existing-home sales in August were at a seasonally adjusted annual rate of 4.0 million, a decrease of 0.2% compared with July but up 1.8% compared with August 2024, according to the National Association of Realtors (NAR).
The decrease came despite a decrease in mortgage rates over the course of the month. The average rate for a 30-year was 6.59%, down from 6.72% in July but up from 6.50% in August 2024.
As of the end of the month, there were roughly 1.53 million existing-homes for sale nationwide, a decrease of 1.3% compared with July but up 11.7% compared with August 2024.
The median existing-home sales price increased 2.0% to $422,600.
Month-over-month, existing-home sales increased in the Midwest and West, but fell in the Northeast and South.
Year-over-year, sales increased in the Midwest and South, but fell in the Northeast and West.
“Home sales have been sluggish over the past few years due to elevated mortgage rates and limited inventory,” says Lawrence Yun, chief economist for NAR, in a statement. “However, mortgage rates are declining and more inventory is coming to the market, which should boost sales in the coming months.”
“Record-high housing wealth and a record-high stock market will help current homeowners trade up and benefit the upper end of the market. However, sales of affordable homes are constrained by the lack of inventory,” Yun adds. “The Midwest was the best-performing region last month, primarily due to relatively affordable market conditions. The median home price in the Midwest is 22 percent below the national median price.”
“While summer is traditionally considered peak season for home-buying, the fourth quarter emerged as the most active period last year, driven by declining mortgage rates in the third quarter,” says Jason Waugh, president of Coldwell Banker Affiliates, in a statement. “Current existing home sales data indicate a similar trend is unfolding this year.”
“Buyers and sellers entering the market now through the end of the year are highly motivated,” Waugh says. “Navigating seasonal changes such as school schedules, inclement weather, and holiday commitments shows serious intent. Sellers maintaining show-ready homes during this period are equally committed. With mortgage rates now at their lowest levels this year, improved affordability is prompting more prospective buyers back into the market. While inventory has plateaued nationally, the pace of new listings is slowing, which may once again tip the scales between buyer demand and available supply.”
Photo: Ian MacDonald