Existing-home sales are declining. In August, existing-home sales dropped by 2.5% month-over-month to an annual rate of 3.86 million, according to housing market platform Zillow. Compared with the same time last year, existing-home sales dropped by 4.2%. This decrease in sales comes as the median home sales price saw a slight increase.
In August, the median home sales price was $416,700, up 3.1% from a year ago but lower than the 3.9% increase seen in July. Housing inventory also increased slightly to 1.35 million units, a 22.7% rise from the previous year.
Dropping just after the Federal Reserve’s announcement for a 50 basis Fed Fund rate cut, this month’s existing home sales reading – and the next few to come – are important tests of the market’s response to lower mortgage rates. The negative 4.2% year-over-year reading in August 2024 makes a comparison to a surprisingly strong showing of new listings and home sales late last year – then taken as a sign that owners were giving up on a near term rate cut.
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