Continuing in its downward trend, sales of existing homes moved lower last month, down 0.7% in August to a seasonally adjusted annual rate of 4.04 million, according to the latest existing-home sales report from the National Association of REALTORS®. Year-over-year, sales dropped 15.3%, according to the report. This follows July’s downturn of 2.2% and June’s drop of 3.3%.
Among the four major U.S. regions, sales improved in the Midwest, were unchanged in the Northeast, and slipped in the South and West. 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).
Key highlights from the report
- The median existing-home sales price climbed 3.9% from one year ago to $407,100–the third consecutive month the median sales price surpassed $400,000.
- The inventory of unsold existing homes dipped 0.9% from the prior month to 1.1 million at the end of August, or the equivalent of 3.3 months’ supply at the current monthly sales pace.
- Total housing inventory registered at the end of August was 1.1 million units, down 0.9% from July and 14.1% from one year ago (1.28 million).
- 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 was $407,100, an increase of 3.9% from August 2022 ($391,700). All four U.S. regions posted price increases.
- According to the REALTORS® Confidence Index, properties typically remained on the market for 20 days in August, unchanged from July and up from 16 days in August 2022. Seventy-two percent of homes sold in August were on the market for less than a month.
- First-time buyers were responsible for 29% of sales in August, down from 30% in July and identical to August 2022.
- All-cash sales accounted for 27% of transactions in August, up from 26% in July and 24% in August 2022.
- Individual investors or second-home buyers purchased 16% of homes in August, the same share as in July and one year ago.
- Distressed sales–foreclosures and short sales–represented 1% of sales in August, unchanged from last month and the previous year.
- Single-family home sales waned to a seasonally adjusted annual rate of 3.60 million in August, down 1.4% from 3.65 million in July and 15.3% from the previous year. The median existing single-family home price was $413,500 in August, up 3.7% from August 2022.
- Existing condominium and co-op sales recorded a seasonally adjusted annual rate of 440,000 units in August, up 4.8% from July but down 15.4% from one year ago. The median existing condo price was $354,600 in August, up 6.2% from the prior year ($333,900).
Regional Breakdown
Northeast
Existing-Home Sales: 480,000 (-5.9% MoM; -22.6% YoY)
Median Price: $465,700 (+5.8% YoY)
Midwest
Existing-Home Sales: 970,000 (+1.0% MoM; -16.4% YoY)
Median Price: $305,300,(+6.8% YoY)
South
Existing-Home Sales: 1.84 million (-1.1% MoM; -12.4% YoY)
Median Price: $366,100 (+3.2% YoY)
West
Existing-Home Sales: 750,000 (-2.6% MoM; -115.7% YoY)
Median Price: $609,300 (+1.0% YoY)
The takeaway:
“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 South had a lighter decline in sales from a year ago due to greater regional job growth since coming out of the pandemic lockdown.”
“Home prices continue to march higher despite lower home sales,” Yun added. “Supply needs to essentially double to moderate home price gains.”
To view the full report, click here.
