The latest Existing-Home Sales Report from the National Association of REALTORS® (NAR) shows that home sales remained largely unchanged in August, dipping just 0.2% month-over-month to a seasonally adjusted annual rate of 4.0 million units. While sales were steady, trends in inventory, pricing, and mortgage rates reveal important signals for both REALTORS® and their clients.
Key Highlights
Month-Over-Month (August vs. July)
- Sales: Down 0.2% to 4.0 million units (SAAR).
- Inventory: Down 1.3% to 1.53 million units, equal to 4.6 months’ supply.
Year-Over-Year (August 2025 vs. August 2024)
- Sales: Up 1.8%.
- Median Price: Rose 2.0% to $422,600, marking the 26th consecutive month of annual price increases.
National Snapshot
- Total Sales: 4.0 million (SAAR), up 1.8% year-over-year.
- Inventory: 1.53 million units, up 11.7% from last year.
- Months’ Supply: 4.6, up from 4.2 one year ago.
- Median Price: $422,600, up 2.0% annually.
By Property Type
- Single-Family Homes: Sales down 0.3% month-over-month, but up 2.5% year-over-year; median price $427,800 (+1.9%).
- Condos/Co-ops: Sales unchanged month-over-month, down 5.1% year-over-year; median price $366,800 (+0.6%).
Regional Breakdown
- Northeast: Sales down 4.0% from July and 2.0% year-over-year; median price $534,200 (+6.2%).
- Midwest: Sales up 2.1% from July and 3.2% year-over-year; median price $330,500 (+4.5%).
- South: Sales down 1.1% from July, but up 3.4% year-over-year; median price $364,100 (+0.4%).
- West: Sales up 1.4% from July, but down 1.4% year-over-year; median price $624,300 (+0.6%).
Market Dynamics
Lawrence Yun, NAR’s Chief Economist, emphasized that elevated mortgage rates and limited affordable inventory have kept sales sluggish in recent years. However, he noted two encouraging developments:
- Mortgage rates are trending lower (average 30-year fixed rate: 6.59% in August, down from 6.72% in July).
- Inventory is slowly increasing, creating more opportunities for buyers.
Yun added that “record-high housing wealth and a record-high stock market” are enabling many homeowners to trade up, especially in the upper-tier markets. However, entry-level and affordable homes remain constrained by supply shortages.
The Midwest continues to be the nation’s standout region, thanks to affordability, with its median home price nearly 22% below the national median.
REALTORS® Confidence Index
- Time on Market: 31 days (up from 28 days in July).
- First-Time Buyers: 28% of sales, up from 26% last year.
- Cash Sales: 28% of transactions, down from 31% in July but up from 26% last year.
- Investors/Second-Home Buyers: 21%, slightly up from 20% last month.
- Distressed Sales: 2%, steady month-over-month, slightly higher than 1% last year.
Looking Ahead
NAR will release the Pending Home Sales Index on September 29, followed by the September Existing-Home Sales Report on October 23. With mortgage rates easing and inventory building, REALTORS® may see stronger buyer activity heading into the fall.
For NJ REALTORS®: Local market conditions may vary significantly from national trends. Always consult your MLS for the most accurate and up-to-date housing data in your area.
