Existing home sales during August were down by 2.0% month-over-month and 1.2% year-over-year, according to data from the National Association of Realtors (NAR). Last month’s sales were at a seasonally adjusted annual rate of 3.98 million, which marked the first time since June 2025 that sales activity fell below 4 million.
August’s total housing inventory was 1.62 million units, up 3.2% from July and up 5.9% from August 2025. This was the first time since November 2019 that inventory exceeded 1.6 million units. There was a 4.9-month supply of unsold inventory, up from 4.6 months in July and 4.6 months in August 2025.
On a regional basis, month-over-month sales declined in the Northeast, Midwest and South while remaining unchanged in the West. Year-over-year sales were unchanged in the South and declined in the Northeast, Midwest and West.
The median existing home sales price for all housing types was $429,100, up by 1.6% from one year ago ($422,400). August was the 38th consecutive month of year-over-year price increases.
NAR’s Housing Affordability Index registered at 104.7, up from 101.2 a year ago.
“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 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.”
Yun added, “The number of months it would take to exhaust the total inventory at the current sales pace has grown to 4.9 months’ supply—its highest level in over ten years. The ample supply of homes for sale on the market is giving homebuyers better opportunities to negotiate.”
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