(The Center Square) – Existing home sales fell in August, while sale prices continued to climb, according to the latest report from the National Association of Realtors.
Existing home sales fell 2.5% in August to a seasonally adjusted annual rate of 3.86 million. That’s down 4.2% from one year ago.
The median existing home sales price increased 3.1% from August 2023 to $416,700, the 14th consecutive month of year-over-year price increases.
Total existing home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – dropped 2.5% from July to a seasonally adjusted annual rate of 3.86 million in August. Year-over-year, sales retracted 4.2% (down from 4.03 million in August 2023).
“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,” NAR Chief Economist Lawrence Yun said. “The home-buying process, from the initial search to getting the house keys, typically takes several months.”
Total housing inventory at the end of August was 1.35 million units, up 0.7% from July and 22.7% from one year ago (1.1 million). 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. A six-month supply is generally considered balanced.
“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,” Yun added. “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 one year ago ($404,200). All four U.S. regions posted price increases, according to NAR figures.
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.2% as of Sept. 12. That’s down from 6.35% one week ago and 7.18% one year ago.
By Brett Rowland |Â The Center Square
