U.S. existing-home sales weakened further in August as elevated mortgage rates and rising home prices continued to pressure affordability.
According to the National Association of Realtors, existing-home sales fell 2% from July to a seasonally adjusted annual rate of 3.98 million units, marking the third consecutive monthly decline and the slowest sales pace in more than a year. Sales were also down 1.2% from August 2025.
Meanwhile, the median existing-home price increased 1.6% year over year to $429,100, setting a record high for August. Prices had continued to rise despite the prolonged slowdown in transaction activity.
Housing inventory showed signs of improvement, with 1.62 million unsold homes available at the end of August—up 5.9% from a year earlier. That represented a 4.9-month supply, the highest level in more than a decade and within the range traditionally considered a balanced market.
The growing supply gave buyers more options and increased negotiating leverage, while affordability challenges continued to keep many prospective homeowners on the sidelines. First-time buyers accounted for 30% of purchases, remaining below the historical average of roughly 40%.
Overall, the August data highlighted a housing market caught between elevated borrowing costs, record-high prices, and gradually improving inventory—creating a more favorable environment for buyers who could afford to enter the market.
Source: Associated Press
