United States existing home sales fell in August despite housing supply reaching its highest level in more than a decade, as buyers continued to face elevated mortgage rates and lofty home prices.
Sales of previously owned homes fell 2% in August from July to 3.98 million units on a seasonally adjusted, annualised basis, according to the National Association of Realtors (NAR), following a 1.7% decline in the previous month.
The sales activity marked the slowest pace since June 2025 and was felt most heavily in the Northeast and Midwest.
Sales were down 1.2% from a year earlier.
“Mortgage rates and home sales move in opposite directions, so it's not surprising to see a mild dip in home buying activity due to high mortgage rates,” said NAR Chief Economist Lawrence Yun.
“Still, home prices are rising, and existing home sales are actually up 1.6% year-to-date through the first eight months of the year.
"Homebuying demand, despite higher interest rates, is no doubt being supported by rising wages, which grew 3.1% in August, along with 643,000 net new jobs added since the start of the year. Job creation and wage growth typically drive housing demand.”
Housing supply totalled 1.62 million homes for sale at the end of August, up 3.2% from July and 5.9% from a year earlier. At the current sales pace, that represents a 4.9-month supply — the highest level in more than a decade, according to NAR.
Despite increased supply, prices continued to rise. The median price of a home sold in August was $429,100, up 1.6% from August 2025 and a new high for the month.
Price gains were strongest in the Northeast, where inventory is lowest. The West was the only region to record a year-over-year decline in median prices.
Sales continued to be strongest at the highest end of the market. Compared with August 2025, sales of homes priced between $100,000 and $250,000 fell 10%, while sales of homes priced above $1 million rose 3.9%.
The million-dollar-plus range was the only price category to record an increase in sales.
Homes remained on the market for longer, averaging 31 days in August compared with 29 days in July.
Buyers paying entirely in cash accounted for 27% of August sales, slightly higher than in July but down marginally from August last year.
First-time buyers accounted for 30% of sales, up slightly from both July and August 2025.
Investors and second-home buyers, however, fell from 2025 levels, accounting for just 15% of August sales, down from 21% a year earlier.
