NAR Report Reveals Underwhelming August Sales Figures for Existing Homes in Sluggish Market
August sales figures for existing homes remain stagnant, with only a slight decrease of 0.2% from July and a modest 1.8% increase year-over-year, according to the National Association of Realtors®.
The latest report from the National Association of Realtors® (NAR) has shown that existing-home sales for the month of August were essentially unchanged, adding to three consecutive years of sluggish sales activity in the housing market. With a seasonally adjusted rate of 4 million homes sold, August saw a mere 0.2% decrease from July. However, compared to the same time last year, the market has seen a modest 1.8% increase in existing-home sales.
This news comes amidst a continued shortage in housing inventory, with a 2.6% decrease in listings from August 2024, marking the 42nd consecutive month of year-over-year declines. According to Lawrence Yun, NAR's chief economist, this continued shortage is a major factor in the sluggish sales activity. "The housing market has been stuck in a holding pattern, with inventory shortages driving up home prices and forcing prospective buyers to compete for the limited number of available homes," he stated.
While the housing market may be stagnating, the report also showed that median home prices have continued to rise, with a 5.6% increase from August 2024. This marks the 32nd consecutive month of year-over-year price gains, with the median price for an existing home now at $254,600.
The report also revealed that first-time homebuyers are still struggling to enter the market, making up only 28% of all buyers in August. This is below the 40% share that is considered to be a healthy level