Previously Owned U.S. Homes

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US existing home sales dip in August
Yahoo Financeยท 2025-09-25 13:55
Core Viewpoint - Sales of previously owned U.S. homes decreased slightly in August due to affordability challenges for buyers, despite a recent decline in mortgage borrowing costs [1][2]. Sales Performance - Home sales fell by 0.2% in August to a seasonally adjusted annual rate of 4.00 million units, down from 4.01 million in July, while year-over-year sales increased by 1.8% [2]. - The sales pace over the last two years has averaged around 4 million units per month, which is weaker than the rates observed during the 2007-2009 recession [3]. Mortgage Rates and Inventory - The average rate on a 30-year fixed mortgage recently decreased to 6.26%, the lowest since last fall, but remains significantly higher than pre-pandemic levels [4]. - Total inventory of homes for sale declined by 1.3% to 1.53 million units, with the current sales pace indicating that this inventory would last 4.6 months [6]. Regional Sales Trends - Sales trends varied by region, with increases in the Midwest and West, while the Northeast and South experienced declines. The Midwest's performance is attributed to better affordability [5]. Pricing Trends - The median sales price of homes rose by 2.0% year-over-year to $422,600, marking the 26th consecutive year-over-year increase, and prices in August were 52% higher than in August 2019 [5]. Buyer Composition - The share of all-cash transactions decreased to 28% from 31% in July, while investors accounted for 21% of all transactions, up from 20% the previous month. First-time buyers represented 28% of sales, unchanged from the previous month but up from 26% a year ago [6].