Existing-home sales fell 2% in August to a seasonally adjusted annual rate of 3.98 million, marking a third consecutive monthly decline, according to the National Association of Realtors (NAR). Sales were down 1.2% from August 2025. Higher borrowing costs continued to weigh on buyers, even as more homes became available.
Inventory Expands
Housing inventory reached 1.62 million homes, representing a 4.9-month supply at the current sales pace, up from 4.6 months in July. The increase gives buyers a wider selection and more opportunity to negotiate. However, national supply figures do not tell the whole story. Competition can differ considerably by neighborhood, price range, and property condition.
Prices Continue to Rise
The median existing-home price reached $429,100, up 1.6% from August 2025 and a record for the month. Despite slower sales, national prices have now risen year over year for 38 consecutive months. For homeowners considering a sale, the national median provides context, but recent comparable sales remain a better guide to an individual home’s value.
Affordability Remains Central
The NAR Housing Affordability Index registered at 104.7, compared with 101.2 one year earlier. Lawrence Yun, chief economist for the NAR, pointed to wage growth and job gains as support for housing demand despite higher interest rates. The combination helps explain why buyers continue to purchase; although, monthly payments remain a constraint.
Buyers Take More Time
Homes spent a median of 31 days on the market, compared with 29 days in July. First-time buyers accounted for 30% of purchases, while cash transactions represented 27%. With more options available, buyers can give closer attention to a home’s condition and the expenses they may face after closing.
What This Means for Buyers and Sellers
August’s report shows more choice and that national prices remain above last year’s levels. Buyers should compare the full cost of ownership and use local sales data to shape an offer. Negotiating help with closing costs or repairs may be as valuable as a lower price. Sellers should watch competing listings closely and respond to showing feedback early. A realistic asking price and a well-maintained home can help a listing stand out as buyers weigh their options.
Regional Sales Snapshot
Northeast: 480,000 sales (-4% MoM, -2% YoY) | Median price: $556,900 (+4.3%)
Midwest: 940,000 sales (-3.1% MoM, -2.1% YoY) | Median price: $340,400 (+3.3%)
South: 1.84 million sales (-1.6% MoM, unchanged YoY) | Median price: $366,500 (+0.7%)
West: 720,000 sales (0% MoM, -2.7% YoY) | Median price: $619,100 (-0.2%)
