The National Association of Realtors (NAR) published a report on Thursday revealing a significant decline in U.S. existing home sales for the month of August.
According to the report, existing home sales dropped by 2.5% to an annual rate of 3.86 million in August, following a 1.3% increase to an annual rate of 3.95 million in July. Economists had anticipated a 1.3% decline, projecting a rate of 3.90 million.
This steeper-than-expected fall brings existing home sales to their lowest level since last October, when the annual rate was 3.85 million.
"Home sales were disappointing again in August, but recent developments such as lower mortgage rates and increasing inventory provide a conducive environment for sales to rise in the coming months," remarked Lawrence Yun, NAR's Chief Economist.
He further noted, "The home-buying process, from initial search to acquiring the keys, generally spans several months."
The report also indicated that housing inventory at the end of August was 1.35 million units, a 0.7% increase from 1.34 million units in July, and a significant 22.7% rise from 1.10 million units the previous year.
The unsold inventory represents a supply of 4.2 months at the current sales pace, compared to 4.1 months in July and 3.3 months in August 2022.
Additionally, NAR reported that the median existing home price in August was $416,700, reflecting a 3.1% increase from $404,200 in the same month last year.
Looking ahead, the Commerce Department is set to release its report on new home sales for August next Wednesday.
