WASHINGTON– Sales of previously owned homes were essentially flat in August, coming in at four million units on a seasonally adjusted, annualized basis, according to the National Association of Realtors.
That is a 0.2% drop from July and an increase of 1.8% from August 2024. Sales were strongest in the Midwest and weakest in the Northeast.
CNBC noted the count is based on closings, so people signing deals in June and July, when mortgage rates were about 50 basis points higher than they are currently. As the CU Daily has reported, rates began dropping sharply at the start of September, which would not figure into these numbers.
Upper vs. Lower
According to the National Association of Realtors, the upper end of the market is moving better than the lower end. Sales of homes priced above $1 million gained 8% year over year, the top performer. Sales of homes priced below $100,000, however, dropped more than 10% from a year ago.
“Record-high housing wealth and a record-high stock market will help current homeowners trade up and benefit the upper end of the market,” NAR’s chief economist, Lawrence Yun, said in a statement. “However, sales of affordable homes are constrained by the lack of inventory.”
Additional Findings
The NAR data also show:
• The Midwest was the best-performing region in August, NAR said, noting affordable market conditions. Median home prices in the Midwest were 22% below the national median price, the report said.
• After a strong run-up earlier this year, supply fell 1.3% last month from July, although it is still up 11.7% year over year. That was the first monthly drop since the start of this year.
• Sellers, seeing weaker prices and higher mortgage rates, are coming off the market or deciding to wait longer before listing. There was a 4.6-month supply of homes for sale in August, considered lean.
• Weaker supply is keeping prices in positive territory. The median price of an existing home sold in August was $422,600, up 2% from a year ago and the 26th consecutive month of annual price gains.
• Homes are staying on the market longer, notching 31 days on average in August, up from 26 in August 2024. The share of first-time buyers is historically low at 28%, and all-cash buyers remain high at 28% of sales, up from 26% a year ago.
