Existing-home sales dropped by 2.5% in August, with year-over-year sales down by 4.2%, according to the National Association of REALTORS® (NAR). The decline was observed in three of the four major U.S. regions, with the Midwest showing no change. Inventory increased slightly, providing more options for buyers, but sellers in areas with limited supply, like the Northeast, still have an advantage.
Key Points:
- Total Sales: Existing-home sales fell 2.5% month-over-month to an annual rate of 3.86 million in August and were down 4.2% compared to August 2023.
- Regional Performance: Sales declined in the Northeast (2%), South (3.9%), and West (2.7%), while the Midwest remained unchanged.
- Inventory: Total housing inventory was 1.35 million units, up 0.7% from July and 22.7% year-over-year, with a 4.2-month supply at the current sales pace.
- Prices: The median existing-home price increased 3.1% year-over-year to $416,700. Prices rose across all regions, with the Northeast seeing the highest increase at 7.7%.
- First-Time Buyers: They accounted for only 26% of sales in August, matching a historic low.
- Mortgage Rates: The 30-year fixed mortgage rate averaged 6.2% in September, down from 7.18% a year ago.
- All-Cash Sales: Represented 26% of transactions, slightly down from last year.
Outlook: Lower mortgage rates and increased inventory are expected to create a more favorable environment for future sales growth.
Source: NAR
