NAR: Existing-Home Sales Dipped 2.5% in August

WASHINGTON – Existing-home sales fell in August, according to the National Association of Realtors®. Three out of four major U.S. regions posted sales declines while the Midwest registered no change. Year-over-year, sales slipped in three regions but remained stable in the Northeast.

Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – decreased 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,” said NAR Chief Economist Lawrence Yun. “The home-buying process, from the initial search to getting the house keys, typically takes several months.”

Total housing inventory registered 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.

“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.

Realtors® Confidence Index

According to the monthly Realtors® Confidence Index, 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 were responsible for 26% of sales in August – matching the all-time low last seen in November 2021 – and down from 29% in both July 2024 and August 2023. NAR’s 2023 Profile of Home Buyers and Sellers – released in November 2023 – found that the annual share of first-time buyers was 32%.

All-cash sales accounted for 26% of transactions in August, down from 27% in both July and one year ago.

Individual investors or second-home buyers, who make up many cash sales, purchased 19% of homes in August, down from 13% in July 2024 and 16% in August 2023.

Distressed sales  – foreclosures and short sales – represented 1% of sales in August, unchanged from last month and the previous year.

Mortgage rates

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.2% as of September 12. That’s down from 6.35% one week ago and 7.18% one year ago.

Single-family and condo/co-op sales

Single-family home sales decreased 2.8% to a seasonally adjusted annual rate of 3.48 million in August, down 3.3% from the previous year. The median existing single-family home price was $422,100 in August, up 2.9% from August 2023.

Existing condominium and co-op sales in August were identical to July at a seasonally adjusted annual rate of 380,000 units, down 11.6% from one year ago (430,000 units). The median existing condo price was $366,500 in August, up 3.5% from the prior year ($354,200).

Regional breakdown

Existing-home sales in the Northeast in August faded 2.0% from July to an annual rate of 480,000, which was identical to August 2023. The median price in the Northeast was $503,200, up 7.7% from last year.

In the Midwest, existing-home sales were unchanged in August at an annual rate of 920,000, down 5.2% from the previous year. The median price in the Midwest was $315,400, up 3.8% from August 2023.

Existing-home sales in the South waned 3.9% from July to an annual rate of 1.73 million in August, down 6.0% from one year before. The median price in the South was $367,000, up 1.6% from one year earlier.

In the West, existing-home sales declined 2.7% in August to an annual rate of 730,000, down 1.4% from a year ago. The median price in the West was $622,500, up 2.2% from August 2023.

© 2024 National Association of Realtors® (NAR)