Existing-home sales fell below a 4 million annual pace in August as inventory climbed, yet prices continued to rise, according to new data released Sept. 10 by the National Association of Realtors.
The August Existing-Home Sales report showed sales falling 2.0% from July to a seasonally adjusted annual rate of 3.98 million, down 1.2% from a year earlier. The median existing-home price still rose 1.6% annually to $429,100, marking the 38th consecutive month of year-over-year gains.
For agents, inventory may be the more useful pricing signal. Supply reached 1.62 million homes, exceeding 1.6 million for the first time since November 2019, while months of supply rose to a more than 10-year high of 4.9.
Mortgage rates continue to weigh on sales
Financing costs remained elevated through August. Freddie Mac’s weekly survey averaged about 6.67% for the 30-year fixed mortgage during the month; the rate had risen to 6.76% by Sept. 10.
Higher borrowing costs remain one constraint on demand, particularly for buyers already contending with elevated home prices. That makes current local inventory and comparable sales more useful than assumptions about how quickly financing conditions may improve.
Higher inventory shifts pricing leverage
Total housing inventory increased 3.2% from July and 5.9% from August 2025. At the August sales pace, the 1.62 million homes on the market represented 4.9 months of supply, up from 4.6 months in July and a year earlier.
The latest figures extend a broader fall-market pattern of more listings competing for relatively subdued buyer demand. NAR Chief Economist Lawrence Yun said the larger supply is improving buyers’ negotiating position. Median time on market also increased to 31 days from 29 days in July, although it was unchanged from August 2025.
Separate August listings data showed additional pressure on sellers. The national median list price fell 1.3% year over year to $424,500, while 20.4% of active listings had received a price cut.
NAR measures completed sales, while listing data capture homes still on the market. Closed prices can keep rising even while more sellers reduce their asking prices.
Regional prices tell different stories
Regional prices diverged in August. The Northeast median rose 4.3% to $556,900, while the Midwest gained 3.3% to $340,400. The South increased 0.7% to $366,500. The West was the only region to post an annual decline, with its median slipping 0.2% to $619,100.
Those gaps make local inventory, competing listings, price reductions, and recent comparable sales more useful than the $429,100 national median when setting a list price. Property type also affected the slowdown. Single-family sales fell 1.9% from July, while condo and co-op sales dropped 2.7%. Median prices still rose 1.7% and 1.5%, respectively.
Local data should drive the list price
August’s data make accurate initial pricing more important as sellers face more competition. Before recommending a price, agents should review local months of supply, days on market, recent price-reduction patterns, pending activity, and comparable sales rather than relying on national appreciation alone.
The August report does not show a nationwide price correction. Prices are still rising, but slower sales and higher inventory are making accurate local pricing harder for sellers to ignore.
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