HIGHLIGHTS:
- In August, existing home sales retreated 0.7% to a seasonally adjusted annual rate of 4.04 million. Sales dropped 15.3% from one year ago.
- The median existing-home sales price climbed 3.9% from one year ago to $407,100 – the third consecutive month the median sales price surpassed $400,000.
- The inventory of unsold existing homes dipped 0.9% from the prior month to 1.1 million at the end of August, or the equivalent of 3.3 months’ supply at the current monthly sales pace.
- Source: NAR
In August, existing-home sales experienced mixed results across the U.S., with only the Midwest showing improvement. The Northeast held steady, while the South and West saw declines. Year-over-year, sales in all regions dropped.
Total existing-home sales, including single-family homes, townhomes, condos, and co-ops, slipped 0.7% from July to 4.04 million in August. Compared to August 2022, sales were down by a significant 15.3%.
NAR’s Chief Economist, Lawrence Yun, noted that home sales have maintained stability in recent months. He pointed out that short-term fluctuations could result from changes in mortgage rates, while long-term growth is expected through job gains. He also mentioned that the South experienced a milder sales decline thanks to robust regional job growth post-pandemic.
Housing inventory at the end of August stood at 1.1 million units, declining 0.9% from July and a substantial 14.1% from the previous year. Unsold inventory remained consistent at a 3.3-month supply, mirroring July’s figures but higher than the 3.2-month supply in August 2022.
The median price for existing homes of all types in August was $407,100, marking a 3.9% increase from the same month in 2022. Notably, price increases were observed across all four U.S. regions.
Yun stressed that despite lower sales, home prices continue to rise, suggesting a need for a substantial increase in supply to moderate these ongoing price hikes.
