Sales of existing homes ticked down in August compared to July, as sellers pulled homes off the market, and a dip in mortgage rates wasn’t enough to nudge buyers off the sidelines last month, according to data released Thursday by the National Association of Realtors.
TAKE THE INMAN INTEL SURVEY FOR SEPTEMBER
The U.S. is now on track to see a seasonally adjusted annual sales rate of four million homes sold this year, NAR said.
“Home sales have been sluggish over the past few years due to elevated mortgage rates and limited inventory,” NAR Chief Economist Lawrence Yun said in a statement. “However, mortgage rates are declining and more inventory is coming to the market, which should boost sales in the coming months.”
The seasonally adjusted sales rate of four million in August was up 1.8 percent compared to a year earlier. Meanwhile, there were 11.7 percent more homes for sale in August 2025 than in August 2024.
Still, Lisa Sturtevant, chief economist for Bright MLS, said the methodology used in the report “could be overstating the strength of Existing-Home Sales.”
“Based on actual sales, August Existing-Home Sales were down 0.8 percent from a year ago and are at their lowest August level in at least 10 years,” Sturtevant said.
Inventory in August was 1.53 million, which was down 1.3 percent from July. The total months of unsold supply sat unchanged from July at 4.6 months, up from 4.2 months a year ago.
The median home price rose 2 percent from a year ago, to $422,600, NAR said.
“Record-high housing wealth and a record-high stock market will help current homeowners trade up and benefit the upper end of the market,” Yun added. “However, sales of affordable homes are constrained by the lack of inventory.”
Sales increased the most in the Midwest, where the median home price is about 22 percent lower than the national median.
- The Northeast saw a 4 percent decline month-over-month with a median price of $534,200, up 6.2 percent year-over-year.
- The Midwest experienced a 2.1 percent increase month-over-month with a median price of $330,500, up 4.5 percent from August.
- The South saw a 1.1 percent decline month-over-month with a median price of $364,100, up 0.4 percent year-over-year.
- The West experienced a 1.4 percent increase month-over-month with a median price of $624,300, up 0.6 percent from August 2024.
Despite the dip in sales nationwide, there were some signs for optimism.
“While summer is traditionally considered peak season for homebuying, Q4 emerged as the most active period last year, driven by declining mortgage rates in Q3,” said Jason Waugh, president of Coldwell Banker Affiliates. “Current existing-home sales data indicate a similar trend is unfolding this year.”
Mortgage rates fell in August but dropped more substantially in September. They now sit around the lowest point in a year. And given the lag time in the data, the impact of the rates may not be reflected yet.
“It may be too soon to tell if declining mortgage rates are bringing out more buyers,” Sturtevant said. “Sales reported for August reflect contracts on homes generally made 30 to 60 days prior, before the recent rate declines.”
