US Existing Home Sales Drop to 3.98 Million Units
US existing-home sales fell 2.0% in August, hitting a 14-month low as high mortgage rates and record prices dampen buyer activity despite rising inventory.
US sales of previously owned homes fell 2.0% in August from July. The annualized rate dropped to 3.98 million units. This is the slowest pace since June 2025. The decline was driven by higher mortgage rates and elevated home prices. The figures reflect completed transactions from contracts signed in June and July. Mortgage rates moved sharply higher in mid-July.
Housing supply reached a multi-decade high in August. There were 1.62 million homes available for sale. This inventory level represents a 4.9-month supply. The increase in options has not led to lower prices. The median price hit a record $429,100. Prices rose 1.6% year-over-year.
Inventory Rises Without Price Cuts
The number of homes for sale increased by 3.2% from July. It is up 5.9% from August 2025. This is the highest supply level in more than a decade. Price gains were strongest in the Northeast. The West was the only region with a year-on-year price decline. The average time on market rose to 31 days. This is up from 29 days in July.
Luxury Segment Outperforms Entry-Level
Sales of homes priced above $1 million increased 3.9%. This was the only price category to grow. Sales of homes between $100,000 and $250,000 fell 10%. Cash buyers accounted for 27% of August transactions. First-time buyers made up 30% of sales. Investors and second-home buyers dropped to 15%. This is down from 21% a year earlier.
Market Dynamics Remain Stiff
Lawrence Yun, chief economist at NAR, noted the inverse link between rates and sales. He stated that home prices continue to rise. Sales are up 1.6% year-to-date through the first eight months. The data indicates a market with more choices but constrained demand. GN auto markets/housing reports highlight this tension between supply and affordability. Buyers face a difficult trade-off between selection and cost.
