Key facts
- Existing home sales in the U.S. fell 2.0% in August to 3.98 million units.
- This marks the lowest sales pace since June 2022.
- High mortgage rates were cited as the primary reason for the decline.
- Inventory rose to 1.62 million units, representing 4.9 months of supply.
- The median sales price increased 1.6% year-over-year to $429,100.
- Housing affordability improved across all regions.
Existing home sales in the U.S. declined 2.0% in August to a seasonally adjusted annual rate of 3.98 million units, the weakest pace since June 2022. The decrease was attributed to persistently high mortgage rates, which continue to affect housing affordability for potential buyers.
On a year-over-year basis, existing home sales were down 1.2%, though they remain up 1.6% for the first eight months of the year compared to the same period in 2025. Sales activity decreased month-over-month in the Northeast, Midwest, and South, while remaining unchanged in the West.
Lawrence Yun, NAR's chief economist, stated that while high mortgage rates are a deterrent, rising wages and job creation are supporting underlying demand. Pending home sales saw a 2.8% week-over-week decrease, and 42.1% of properties experienced price reductions, indicating a potential market softening.
Inventory levels increased to 1.62 million units by the end of August, a 3.2% month-over-month rise and a 5.9% increase from a year ago. This marks the highest inventory since November 2019, representing 4.9 months of supply at the current sales pace, the highest in over a decade. This ample supply is providing buyers with greater negotiation power.
The median sales price for existing homes rose 1.6% year-over-year to $429,100 in August, marking the 38th consecutive month of annual price increases. The Housing Affordability Index improved to 104.7, and the median time on market increased to 31 days. First-time buyers accounted for 30% of sales, and all-cash sales represented 27%.