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August Existing Home Sales Hit Multi-Year Low Despite Rising Inventory

Finance · Real Estate Development · cnbc · 2026-09-10

Previously owned home sales dropped 2% in August to 3.98 million units, reaching their slowest pace since 2025 as high mortgage rates continue to pressure buyers.

What Happened

Market Activity and Sales Volume: Existing home sales declined by 2% in August to a seasonally adjusted annual rate of 3.98 million units, marking the lowest level of activity since June 2025. While year-to-date sales remain slightly positive, the monthly dip reflects the ongoing impact of elevated mortgage rates on buyer affordability.

Inventory and Pricing Trends: Housing inventory rose to 1.62 million units, representing a 4.9-month supply, which is the highest level observed in over a decade. Despite this increase in available homes, the median sales price climbed 1.6% year-over-year to a record August high of $429,100.

Regional and Segment Performance: The Northeast and Midwest experienced the most significant declines in sales volume, while the million-dollar-plus market segment was the only category to show growth. Homes are remaining on the market for an average of 31 days, indicating a slight cooling in the speed of transactions compared to the previous month.

Buyer Composition and Outlook: Cash buyers accounted for 27% of transactions, while first-time buyers represented 30% of the market share. Notably, participation from investors and second-home buyers has decreased significantly compared to the previous year, highlighting a shift in the demographic profile of active market participants.

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