Existing home sales were mostly flat in August, dipping by a scant 0.2% from July to a seasonally adjusted annual rate of 4 million, according to the National Association of Realtors (NAR). On a year-over-year basis, sales were up by 1.8%.
Regionally, month-over-month sales increased in the Midwest and West but were down in the Northeast and South. Year-over-year, sales rose 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,” said NAR Chief Economist Lawrence Yun. “However, mortgage rates are declining and more inventory is coming to the market, which should boost sales in the coming months.”
NAR also reported the median existing home price for all housing types last month was $422,600: up 2% from $414,200 in August 2024. This marked the 26th consecutive month of year-over-year price increases. During August, 28% of sales were first-time homebuyers, unchanged from the prior month and up from 26% one year earlier, while 21% of transactions were individual investors or second-home buyers, up from 20% in July and 19% in August 2024.
Yun added, “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 added. “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.”
