Existing-home sales posted another decrease last month, as higher costs may be keeping more home buyers cautiously watching from the sidelines. But as the number of For Sale signs rises, real estate pros point to more choices and opportunities for buyers who decide to make moves this fall.
Existing-home sales—which include single-family homes, townhomes, condos and co-ops—fell 2% in August from July, marking another monthly decline after sales had dropped 1.7% in July, the National Association of REALTORS® reports.
Homebuying demand is still evident, but buyers appear to be taking more time to act. Mortgage rates—averaging 6.67% in August, up from 6.59% a year earlier—along with still-rising home prices may be giving some buyers pause.
“Mortgage rates and home sales move in opposite directions, so it’s not surprising to see a mild dip in homebuying activity due to high mortgage rates,” says Lawrence Yun, NAR's chief economist, about the latest decrease in existing-home sales. “Still, home prices are rising.” The median existing-home sales price in August rose 1.6% annually to $429,100, as most homeowners continue to see equity gains.
Despite the potential increase in home shopping budgets, the affordability picture may be improving somewhat due to higher wages and continued job growth. NAR’s Housing Affordability Index showed improvement nationwide last month, with the biggest gains in the West and South.
“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,” Yun says. “Job creation and wage growth typically drive housing demand.”
Buyers May Find More Negotiating Power
House hunters in today’s market may find more choices of homes for sale than buyers have had in years. More homeowners are putting their homes on the market with housing inventories climbing 3.2% in August from July and up about 6% from a year ago, offering a meaningful boost to a market that has long been starved for listings. NAR’s data shows this is the first time since November 2019 that housing inventory nationally has exceeded 1.6 million units.
“The number of months it would take to exhaust the total inventory at the current sales pace has grown to 4.9 months’ supply—it’s the highest level in over 10 years,” Yun says. “The ample supply of homes for sale on the market is giving home buyers better opportunities to negotiate.”
For prospective home buyers, their patience in the market may now be translating into more opportunities. Only 16% of homes sold above list price in August, down from 20% a year ago, according to the REALTORS® Confidence Index.
More sellers are keeping their homes on the market—choosing not to delist at rates seen last year—while waiting for buyers. The median days on the market in August was 31 days, NAR’s data shows.
Instead, more sellers are cutting prices to gain buyers’ attention. About 20% of active listings have had a price reduction, with price cuts most common in Denver (31.4%), Portland, Ore. (30.5%) and Salt Lake City (30.3%), according to Realtor.com.
The perceived opportunity may be gradually drawing more first-time buyers back into the market, with their share of home purchases rising to 30% of existing-home sales in August, up from 28% a year ago, according to the REALTORS® Confidence Index.
Related: What to Do When Your Market Isn’t Quite a Buyer’s Market
Regional Snapshot for Existing-Home Sales
Here’s a closer look at how existing-home sales fared across the country last month:
- Northeast: Sales fell 4% in August compared to July, settling in at an annual rate of 480,000. That represents a 2% decrease from a year ago. Median price: $556,900, up 4.3% from August 2025.
- Midwest: Existing-home sales dropped 3.1% compared to July, reaching an annual rate of 940,000. Sales are down 2.1% from August 2025. Median price: $340,400, up 3.3% from a year ago.
- South: Sales dropped 1.6% in August compared to July, reaching an annual rate of 1.84 million. Sales were unchanged from a year ago. Median price: $366,500, up 0.7% from August 2025.
- West: Existing-home sales held steady last month at an annual rate of 720,000. Sales are down 2.7% from a year ago. Median price: $619,100, down 0.2% from a year ago.
