Existing-Home Sales Remain Steady Amid Softening Market Conditions
Sales of previously owned homes showed little movement in August, continuing the slow and steady pattern observed throughout 2025. According to the National Association of Realtors (NAR), existing-home transactions were reported at a seasonally adjusted annual rate of 4.0 million, down just 0.2% from July, but still 1.8% higher than August 2024. For the past three years, sales have hovered around 75% of pre-pandemic levels, reflecting a market that is constrained but remarkably resilient.
“Mortgage rates are starting to ease, and inventory is gradually improving,” said Lawrence Yun, Chief Economist at NAR. “These factors, combined with record-high housing wealth and a robust stock market, should support move-up activity. However, the lower end of the market remains particularly tight, keeping affordability pressures in place for first-time buyers.”
Regional Highlights
The August report shows mixed performance across U.S. regions, with some areas seeing modest gains and others facing declines:
| Region | Annual Sales Rate | Month-over-Month Change | Median Price | Year-over-Year Change |
|---|---|---|---|---|
| Northeast | 480k | -4.0% | $534,200 | +6.2% |
| Midwest | 960k | +2.1% | $330,500 | +4.5% |
| South | 1.83m | -1.1% | $364,100 | +0.4% |
| West | 730k | +1.4% | $624,300 | +0.6% |
- The Midwest continues to benefit from affordability, posting a 2.1% monthly increase in sales and a moderate 4.5% rise in median home prices.
- In contrast, the Northeast and South experienced slight declines in transactions, highlighting continued constraints in high-demand and inventory-limited markets.
- The West shows modest month-over-month growth, but year-over-year gains remain minimal as high prices dampen demand.
National Market Trends
Across the country, key metrics illustrate a market that is stable but still challenged by inventory and affordability issues:
- Total Housing Inventory: 1.53 million units (down 1.3% from July; up 11.7% YoY)
- Unsold Inventory Supply: 4.6 months (unchanged from July; up from 4.2 months a year ago)
- Median Existing-Home Price: $422,600 (up 2.0% YoY)
- Typical Time on Market: 31 days (up from 28 last month; up from 26 a year ago)
- First-Time Home Buyer Share: 28% (unchanged from July; up from 26% a year ago)
- Cash Sales Share: 28% (down from 31% last month; up from 26% a year ago)
- Investor/Second-Home Buyer Share: 21% (slightly up from 20% last month)
- Distressed Sales Share: 2% (unchanged from July; slightly higher than 1% last year)
Market Insights
August’s data reinforces a broader narrative: while overall demand is subdued, the market has found a stable equilibrium. Slightly lower mortgage rates, paired with gradually rising inventory, may help break the logjam, particularly if these trends persist into the fall buying season.
Industry experts note that buyers remain cautious, waiting for more favorable conditions, while sellers are gradually testing the market with new listings. Move-up buyers those trading a current home for a larger or more expensive property are benefiting from high home equity and strong investment portfolios, further supporting market activity in the upper tiers.
“The current environment reflects a slow-motion balance,” Yun added. “Affordability challenges continue to constrain first-time buyers, but gradually easing rates and more inventory could shift the market toward a modest increase in transactions over the coming months.”
As the fall season progresses, analysts will be watching whether these incremental improvements can translate into sustained growth in home sales, particularly in regions where prices have historically restricted buyer access. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
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