Existing home sales were down 2.5% from July to August, reaching a seasonally adjusted annual rate of 3.86 million in August, according to new data from the National Association of Realtors (NAR). Year-over-year, sales fell by 4.2% from the 4.03 million sales in August 2023.
The total housing inventory 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 consisted of a 4.2-month supply at the current sales pace, up from 4.1 months in July and up from 3.3 months in August 2023.
The median existing-home price for all housing types was $416,700, up 3.1% from one year ago ($404,200). All-cash sales accounted for 26% of transactions in August, down from 27% in both July and one year ago.
First-time buyers were responsible for 26% of sales in August – matching the all-time low last seen in November 2021 – and down from 29% in both the previous month and one year earlier.
“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.”
“The rise in inventory – and, more technically, the accompanying months’ supply – implies home buyers are in a much-improved position to find the right home and at more favorable prices,” Yun added. “However, in areas where supply remains limited, like many markets in the Northeast, sellers still appear to hold the upper hand.”
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