U.S. existing home sales increased for the first time in five months, as lower mortgage rates and rising inventory helped boost market activity. According to the National Association of REALTORS® (NAR), sales of previously owned homes rose 1.3% month-over-month to a seasonally adjusted annual rate of 3.95 million units. This increase exceeded economists’ expectations and ended the recent downward trend.
New listings surged, with a 40.7% increase for single-family homes and a 74.7% increase for condominiums. However, pending sales dropped by 15.5% for single-family homes and 20.3% for condominiums. Inventory also saw significant growth, rising 68.1% for single-family homes and a substantial 275.9% for condominiums.
The median sales price climbed 10.4% to $1,325,000 for single-family homes and 33.3% to $1,000,000 for condominiums. The days on the market increased by 25.3% for single-family homes and 47.2% for condominiums. Meanwhile, the months’ supply of inventory rose by 72.7% for single-family homes and 334.6% for condominiums.
NAR data shows that total housing inventory edged up 0.8% from the previous month, reaching 1.33 million units as of August. This represents a 4.0-month supply at the current sales pace. Although inventory has increased by nearly 20% compared to last year, demand continues to outstrip supply, putting upward pressure on prices. According to NAR, the nationwide median existing-home price rose 4.2% year-over-year to $422,600, marking the 13th consecutive month of annual price increases.
