NAR: Existing-Home Sales Down 2.5% in August
(Image courtesy of NAR; Breakout image courtesy of Thai Dang/pexels.com)
The National Association of Realtors, Chicago, reported existing-home sales fell 2.5% in August from July, to a seasonally adjusted annual rate of 3.86 million.
Compared with August 2023, sales were down 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 future months,” said NAR Chief Economist Lawrence Yun. “The home-buying process, from the initial search to getting the house keys, typically takes several months.”
The median existing-home sales price rose 3.1% year-over-year to $416,700. That marks the 14th straight month in which prices have increased compared with year-ago numbers.
Total inventory stood at 1.35 million units, up 0.7% from July. However, that’s up a significant 22.7% from one year ago.
Unsold inventory is at a 4.2-month supply at the current pace, up from 4.1 months in July and 3.3 months this time last year.
Properties typically remained on the market for 26 days in August, up from 24 days in July and 20 days in August 2023.
First-time buyers accounted for 26% of sales in August, near the all-time low hit in November 2021. The figure stood at 29% in July 2024 and August 2023.
All cash sales were also at 26%, down from 27% in July 2024 and August 2023.
Distressed sales stood at about 1%, flat from last month and last year.
Regionally, existing-home sales in the Northeast fell 2% from July to an annual rate of 480,000. That’s flat from August 2023, and the median price was $503,200, up 7.7% from a year ago.
In the Midwest, sales were flat at 920,000 and down 5.2% from a year ago. The median price was $315,400, up 3.8% from August 2023.
Existing-home sales in the South fell 3.9% from July and 6% from August 2023. They stand at an annual rate of 1.73 million, with a median price of $367,000, up 1.6% from August 2023.
In the West, existing home sales fell 2.7% in August to an annual rate of 730,000, down 1.4% from a year ago. The median price was $622,500, up 2.2% from August 2023.
