Existing-Home Sales Declined 2.5% in August

Washington, DC, September 19, 2024-Total existing-home sales descended 2.5% from July to a seasonally adjusted annual rate of 3.86 million in August, according to the National Association of Realtors. 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.