Existing-home sales slipped in August, falling below the 4 million annualized pace for the first time since June 2025, while a sharp increase in inventory gave buyers more options and pushed the supply of homes to its highest level in more than a decade. The National Association of REALTORS® reported a 2.0% decline in sales from July to a seasonally adjusted annual rate of 3.98 million, while sales were 1.2% lower than a year earlier.
“Mortgage rates and home sales move in opposite directions, so it's not surprising to see a mild dip in home buying activity due to high mortgage rates,” said NAR Chief Economist Lawrence Yun. He noted that sales are still 1.6% higher year-to-date through the first eight months of the year, with wage growth and job creation helping to support demand despite elevated borrowing costs.
Inventory provided a more encouraging development for buyers. Total housing inventory rose to 1.62 million units, up 3.2% from July and 5.9% from a year ago. It was the first time since November 2019 that inventory exceeded 1.6 million units.
The increase in supply pushed the market to a 4.9-month supply, up from 4.6 months in both July and August 2025. Yun noted that the current level is the highest in more than ten years and should give buyers more room to negotiate.
Despite higher inventory, home prices continued to climb, although the pace of appreciation remained modest. The median existing-home price increased to $429,100, up 1.6% from August 2025 and marking the 38th consecutive month of year-over-year price increases.
Affordability also continued to improve on a year-over-year basis. The Housing Affordability Index rose to 104.7, up from 101.2 a year earlier, with affordability improving across all four regions.
Regional Breakdown (Sales and Prices, August 2026)
| Region | Sales (annual rate) | MoM Change | Median Price | YoY Change |
|---|---|---|---|---|
| Northeast | 480k | -4.0% | $556,900 | +4.3% |
| Midwest | 940k | -3.1% | $340,400 | +3.3% |
| South | 1.84m | -1.6% | $366,500 | +0.7% |
| West | 720k | 0.0% | $619,100 | -0.2% |
National Market Stats
- Total Housing Inventory: 1.62 million units (up 3.2% from July; up 5.9% YoY)
- Unsold Inventory Supply: 4.9 months (up from 4.6 months in July and August 2025)
- Median Existing-Home Price: $429,100 (up 1.6% YoY; 38th consecutive annual increase)
- Housing Affordability Index: 104.7 (up from 101.2 one year ago)
- Single-Family Sales: 3.62 million (down 1.9% MoM; down 1.1% YoY)
- Single-Family Median Price: $434,800 (up 1.7% YoY)
- Condo/Co-op Sales: 360k (down 2.7% MoM; down 2.7% YoY)
- Condo/Co-op Median Price: $371,600 (up 1.5% YoY)
