US existing home sales fall to slowest pace in over a year

U.S. existing home sales fell for the third consecutive month in August, dropping 2% from July to a seasonally adjusted annual rate of 3.98 million units. This represents the slowest sales pace since June 2025. Despite the decline in transactions, the median sales price rose 1.6% year-over-year to $429,100, marking the 38th consecutive month of price increases.

Inventory levels have seen a significant rise, reaching a 4.9-month supply, the highest since November 2015. This increase in supply comes as high mortgage rates, which averaged around 6.7% in August, continue to deter potential buyers. Lawrence Yun, chief economist at the National Association of Realtors, noted that mortgage rates and home sales typically move in opposite directions.

The market shows a notable divide in activity: while sales for homes under $250,000 fell by 10%, sales for properties exceeding $1 million actually increased by 3.9%. Additionally, the luxury housing market is undergoing a recalibration, with price thresholds for top-tier listings seeing consecutive annual declines.