U.S. Existing Home Sales Hit 10-Year Low in August Amid High Prices

Existing U.S. home sales experienced a slight decline of 0.2% in August 2025, settling at a seasonally adjusted annual rate of 4 million units—the slowest pace since June—according to multiple reports from the National Association of Realtors (NAR). Despite this monthly dip, sales were 1.8% higher than the previous year, marking the second consecutive month of annual gains. The median home price rose 2% year-over-year to $422,600, continuing a 26-month streak of price increases, while inventory increased 11.7% from August 2024 to 1.53 million units, maintaining a 4.6-month supply, which indicates a balanced market. Elevated mortgage rates above 6.5% earlier in the year constrained buyers, but recent declines to around 6.26% and further expected rate cuts are anticipated to improve affordability and boost market activity in the coming months. Regional variations were notable, with the Midwest outperforming due to more affordable prices, while the Northeast and West saw declines in sales. Although affordability challenges persist for many buyers, especially in the lower-priced segment due to limited inventory, improving mortgage rates and growing inventory are expected to support a more active fall housing market.