US Existing Home Sales Decline: August Data Shows 0.7% Drop

The National Association of Realtors reports a 0.7% decline in US existing home sales for August. Find out more about the latest data and trends in the housing market.

Existing home sales experienced a slight decline during late summer, dropping by 0.7% from July to August, according to the latest data released by the National Association of Realtors (NAR). Furthermore, sales of all types of existing homes decreased by 15.3% year-over-year in August, reaching an annually adjusted rate of 4.04 million. Throughout the year, sales have predominantly been on a downward trend, with the exception of February and May. However, when observing the entirety of 2023, Lawrence Yun, the NAR Chief Economist, noted that month-to-month sales have remained fairly steady.

In August, the median price of all existing home types reached $407,100, exhibiting a mere $400 increase in comparison to the previous month. Nonetheless, this figure reflects a substantial year-over-year gain of $15,400, equivalent to nearly 4%. As August drew to a close, the inventory of homes for sale stood at around 1.1 million, marking a slight decrease of approximately 1% from the prior month and a significant 14% decrease from the previous year. Consequently, the current supply equates to 3.3 months, remaining unchanged from July but slightly higher than the 3.2 months reported a year ago.

What implications do these latest statistics hold for consumers? Undoubtedly, it becomes increasingly challenging for first-time homebuyers to enter the market. However, the autumn season, characterized by reduced competition and more reasonable pricing expectations among homeowners, may present favorable opportunities for potential buyers.

Interestingly, declining sales have not halted the continuous rise in prices. Although sales in the Northeast remained stagnant, median prices displayed a year-over-year increase of 5.8%. Similarly, the South witnessed a modest 1% growth in sales during August, accompanied by an even greater surge in prices, amounting to a 6.8% rise from the previous year. Even in regions where sales experienced a decline, prices remained resilient. In the South, existing home sales dipped by 1.1%, while prices escalated by 3.2% compared to the previous year. Certain costly metropolitan areas in the West encountered declines in sales by 2.6% in August. Nevertheless, overall prices in the region still exhibited a 1% year-over-year increase.

In conclusion, the recent dip in existing home sales poses challenges for prospective first-time buyers. However, the forthcoming autumn season might provide them with a less competitive market, where homeowners demonstrate greater willingness to negotiate prices. Despite the decline in sales, prices have continued to climb, even in areas that experienced a decrease in sales volume. These dynamics shape the current landscape of the housing market, impacting buyers and sellers alike.