Existing Home Sales were weaker than estimates per the National Association of REALTORS® (NAR), as August’s transactions were down 2.5% from July and 4.2% from a year ago. This report measures closings on existing homes in August and likely reflects people shopping for homes in June and July, before rates made their latest leg lower.
What’s the bottom line? While the number of closings declined in August, some of the internals within the report point to the demand that’s out there. Homes remained on the market for an average of 26 days in August, while almost a quarter of homes (24%) sold above list price. Lower mortgage rates are also expected to spur activity in the coming months.
Regarding inventory, there were 1.35 million homes available for sale at the end of August, up 0.7% from July and 22.7% from a year earlier. While this sounds like a big jump, the rise is from very low numbers and inventory remains well below pre-pandemic levels. The pent-up demand for homes combined with ongoing tight supply continues to bode well for housing as an investment and continued home price appreciation over time.