by Inventory also remains high, giving buyers plenty of options in the marketplace, which could also lead to more furniture sales
WASHINGTON — August existing-home sales posted their second consecutive year-over-year increase, and their third since January, offering a much-welcome boost as interest rates start a modest decline.
Other economic indicators including a rising stock market and rising home values also are contributing to a sense of increased wealth among homeowners, which could lead to lead to strong furniture sales.
According to the National Association of Realtors, existing home sales totaled 4 million, up 1.8% from August 2024 and down just .2% from July. Year-over-year, sales rose in the Midwest and South, and fell in the Northeast and West, while monthly sales rose in the Midwest and West, and fell in the Northeast and South, the NAR said.
Of the total sold, 3.63 million, or 90.8% were single-family homes, up 2.5% from August 2024, with the balance being condominiums or co-ops, down 5.1% from August 2024.
“Home sales have been sluggish over the past few years due to elevated mortgage rates and limited inventory,” said NAR Chief Economist Lawrence Yun. “However, mortgage rates are declining and more inventory is coming to the market, which should boost sales in the coming months.”
To Yun’s point, there were 1.53 million existing homes for sale in August, up 11.7% from 1.37 million in August 2024 but down 1.3% from July. The total represents a 4.6-month supply of unsold inventory, up from 4.2 months in August 2024 and unchanged from July.
While inventory levels remain high, so do prices, which continues to pose challenges for many buyers, including first-time buyers. For example, the median home price was $422,600 for all housing types, which was up 2% from $414,200 in August 2024 and the 26th consecutive month of year-over-year increases, the NAR said.
The median single-family home price in August was $427,800, up 1.9% from last year. This compares with $366,800 for condominiums and co-ops, up .6% from August 2024.
By region, the activity was as follows:
In the Northeast, existing home sales totaled 480,000, down 2% from August 2024 and down 4% from July. The median sale price in the region was $534,200, a 6.2% increase from August 2024.
In the Midwest sales totaled 960,000, up 3.2% from August 2024 and up 2.1% from July. The median sale price was $330,500, up 4.5% from August 2024.
In the South, sales totaled 1.83 million, up 3.4% from August 2024 and down 1.1% from July. The median sale price was $364,100, up .4% from August 2024.
In the West, sales totaled 730,000, down 1.4% from August 2024 and up 1.4% from July. The median sale price was $624,300, up 0.6% from August 2024.
“Record-high housing wealth and a record-high stock market will help current homeowners trade up and benefit the upper end of the market,” Yun said. “However, sales of affordable homes are constrained by the lack of inventory. The Midwest was the best-performing region last month, primarily due to relatively affordable market conditions. The median home price in the Midwest is 22 percent below the national median price.”
Other highlights of the report are as follows:
+ Homes were on the market for a median of 31 days in August, up from 26 days in August 2024 and up from 28 days in July.
+ First-time homebuyers accounted for 28% of sales, up from 26% in August 2024 and unchanged from July.
+ Cash sales accounted for 28% of transactions, up from 26% in August 2024 and down from 31% in July. Individual investors or second home buyers that make up many cash sales accounted for 21% of transactions, compared with 19% in August 2024 and 20% in July.
+ About 2% of sales were distressed sales, including foreclosures and short sales, up from 1% in august 2024 and unchanged from July.
+ The average 30-year fixed-rate mortgage was 6.59% in August, compared with 6.50% a year earlier and down from 6.72% in July according to Freddie Mac.
As small as the increases might be, the good news for the industry is that home sales continue to rise, which of course almost always leads to some type of furniture sales.
Also of note is the increase in the number of first-time homebuyers, another area of sales growth opportunity for the industry. We believe that despite some challenges — including higher finished product costs resulting from tariffs — existing home sales and new home construction will continue amid an environment of lower interest rates and rising consumer confidence. While there are no guarantees in such volatile times, the industry may have better times ahead thanks to a confluence of factors that contributes to a strong housing market that provides plenty of options for buyers and sellers alike.
