Existing-home sales held steady in August, dipping 0.2% from July to a seasonally adjusted annual rate of 4 million, according to the National Association of Realtors (NAR). Year over year, sales rose 1.8%. With mortgage rates now below 6.3% and more homes coming to market, conditions are gradually improving for buyers. “Home sales have struggled recently due to high mortgage rates and limited inventory,” said Lawrence Yun, chief economist for the NAR, “but both challenges are beginning to ease.”

More Listings, but Affordability Still a Struggle

In August, housing inventory reached 1.53 million units—down 1.3% from July but nearly 12% higher than a year ago. That’s a 4.6-month supply of homes, up from 4.2 months last year. While listings have increased, affordable options remain limited. “Record-high housing wealth and a strong stock market are helping homeowners move up to pricier homes,” Yun noted. “But affordable homes are still constrained by low inventory.”

Price Growth Slows, but Homes Still Appreciate

The median existing-home price rose to $422,600 in August, a 2% gain from one year ago—the 26th straight month of annual price increases. Although growth has slowed, it may offer some relief for buyers. For context, home prices have climbed roughly 36% since August 2020, outpacing inflation and wage gains, and reaffirming real estate’s reputation as a solid long-term investment.

Market Activity in August

Homes sold in August spent a median of 31 days on the market, up from 26 days a year earlier. First-time buyers represented 28% of sales, matching the share of cash buyers. Investors and second-home purchasers accounted for 21% of transactions, while distressed sales remained minimal at just 2%.

Takeaways for Buyers and Sellers

For buyers, easing mortgage rates and increasing inventory could bring more breathing room heading into fall—especially for those patient enough to find the right home. Sellers continue to benefit from steady appreciation and a pool of buyers adapting to higher borrowing costs. As the market rebalances, both sides can gain an edge by staying flexible and working with an experienced real estate professional.

Regional Sales Snapshot

• Northeast: 480,000 existing-home sales (-4% MoM, -2% YoY) | Median Price: $534,200 (+6.2%)

• Midwest: 960,000 existing-home sales (+2.1% MoM, +3.2% YoY) | Median Price: $330,500 (+4.5%)

• South: 1.83 million existing-home sales (-1.1% MoM, +3.4% YoY) | Median Price: $364,100 (+0.4%)

• West: 730,000 existing-home sales (+1.4% MoM, -1.4% YoY) | Median Price: $624,300 (+0.6%)