U.S. Existing Home Sales (August 2026)

Existing home sales fall for a third consecutive month in August

• Existing home sales fell 2.0% month-on-month (m/m) to 3.98 million units (annualized) in August, roughly in line with market expectations. Activity is down 1.2% from year-ago levels.
• Sales in the single-family segment fell 1.9% to 3.62 million, while sales in the smaller condo/co-op segment fell 2.7% to 360,000 (annualized).
• Activity declined across most regions, with sales falling 4.0% in the Northeast, 3.1% in the Midwest and 1.6% in the South, while remaining unchanged in the West.
• Unadjusted inventory levels stood at 1.62 million, up 3.2% from July and 5.9% from August 2025. Measured at the current sales rate and on a seasonally adjusted basis, unsold inventory stood at 4.6 months’ supply, barely within the balanced range of four-to-six months, but up moderately from 4.3 months in both July of this year and August of last year. 
• The median home price was up 1.6% year-on-year, a mild deceleration from 2.5% in the month prior. 
  
   
   

Key Implications

• Existing home sales declined for a third consecutive month in August, falling below the four-million mark and reinforcing the broader picture of a market still constrained by poor affordability. The latest reading reflects purchase contracts signed in the 1-2 months prior, when mortgage rates were already moving higher. The bigger picture remains little changed, with activity subdued by historical standards as elevated borrowing costs and home prices continue to limit purchasing power. Meanwhile, inventory remains only marginally within balanced territory, providing buyers with a bit more choice than over the past year but remaining sufficiently contained to support prices despite weak demand.
• Near-term financing conditions have become even less supportive. Daily measures of the 30-year fixed mortgage rate are approaching 7%, returning to levels last seen around mid-2025. This renewed increase in financing costs will further erode affordability and constrain buyer demand. The labor market continues to provide some support, but households are facing additional pressure from rising costs elsewhere, like higher fuel prices, which are chipping away at disposable income. Against this backdrop, existing home sales are likely to remain subdued through the remainder of the year.
  
   

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