Existing Home Sales Decrease in August

(Courtesy National Association of Realtors)

Existing home sales moved lower in August, the National Association of Realtors reported.

Among the four major U.S. regions, sales improved in the Midwest, held steady in the Northeast and slipped in the South and West, NAR said in its latest monthly report. All four regions recorded year-over-year sales declines.

Total existing home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – slid 0.7% from July to a seasonally adjusted annual rate of 4.04 million in August. Year-over-year, sales fell 15.3% (down from 4.77 million in August 2022), NAR reported.

“Home sales have been stable for several months, neither rising nor falling in any meaningful way,” said NAR Chief Economist Lawrence Yun. “Mortgage rate changes will have a big impact over the short run, while job gains will have a steady, positive impact over the long run.”

The report said total housing inventory at the end of August equaled 1.1 million units, down 0.9% from July and 14.1% from one year ago. Unsold inventory sits at a 3.3-month supply at the current sales pace, identical to July and up from 3.2 months in August 2022.

The median existing home price for all housing types in August equaled $407,100, an increase of 3.9% from August 2022 ($391,700). All four U.S. regions posted price increases, NAR said.

“Home prices continue to march higher despite lower home sales,” Yun said. “Supply needs to essentially double to moderate home price gains.”