Existing-home sales—including transactions for single-family homes, townhomes, condos, and co-ops—declined by 2.5% in August to a seasonally adjusted annual rate of 3.86 million, according to the National Association of Realtors (NAR). On a year-over-year basis, existing-home sales fell by 4.2%.
“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 the future months,” says NAR chief economist Lawrence Yun. “The home-buying process, from the initial search to getting the house keys, typically takes several months.”
Single-family home sales in August declined by 2.8% to a seasonally adjusted annual rate of 3.48 million in August. Compared to August 2023, single-family home sales fell by 3.3%.
Total housing inventory at the end of August was 1.35 million units, up 0.7% from July and 22.7% from a year ago.
Unsold inventory sits at a 4.2-month supply at the current sales pace, up from 4.1 months in July and 3.3 months in August 2023. According to the REALTORS Confidence Index, properties typically remained on the market for 26 days in August, up two days from the previous month and up six days from a year ago.
“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,” says Yun. “However, in areas where supply remains limited, like many markets in the Northeast, sellers still appear to hold the upper hand.”
The median existing-home price for all housing types in August was $416,700, up 3.1% from a year ago. For single-family homes, the median price was $422,100, up 2.9% on a year-over-year basis.
First-time buyers accounted for 26% of existing-home sales in August, which matches the all-time low from November 2021, according to the NAR.
All-cash sales represented 26% of transactions in August, down from 27% a month ago and a year ago. Individual investors or second-home buyers purchased 19% of homes in August.
On a regional basis, August sales in the Northeast were flat on a year-over-year basis but down 2.0% from July. In the Midwest, sales were unchanged from the previous month but 5.2% lower than August 2023 levels.
Existing-home sales in the South fell 3.9% from July and 6.0% from August 2023. In the West, sales fell 2.7% on a month-over-month basis and 1.4% on a year-over-year basis in August.
Median prices increased on a year-over-year basis in all four regions, with the Northeast recording the largest percentage increase (7.7%) and the West reporting the largest median price ($622,500).
