Existing-home sales eased further
Existing-home sales eased further in August. Sales fell 2.5% from July’s revised figure to a 3.86 million-unit pace and were 4.2% lower than one year ago. Although homebuyers had more for-sale homes to choose from and increased buying power from easing mortgage rates, it seems that many are waiting for additional improvements.
Despite slower sales, the median home sales price continued to climb, rising 3.1% from one year ago to $416,700. This was down from the July sales price, as is typical at this time of year.
Regionally, prices rose while sales trends varied
Regionally, prices climbed in all four regions, with the biggest gains in the Northeast. Sales dipped from a month ago between 2% and 4% in all regions except the Midwest. From a year ago, sales in the Northeast were steady, while all other regions trailed by a range of 1% to 6%.
Buyers may have waited…
So far, those buyers who waited might be glad that they did. Not only have mortgage rates continued to fall into early September, but we’re also nearing a seasonal sweet spot for homebuyers, when competition usually wanes, home prices ease, and time on the market tends to grow. In fact, these seasonal trends led Realtor.com® to identify Sept. 29–Oct. 5 as the Best Time To Buy for home shoppers nationwide, with some regional variation before and after this week in markets around the country.
… but may have reasons to move forward
A key question for housing consumers is whether to continue to wait or go ahead and move forward. Surveys show that consumers expect additional mortgage rate declines in the next year. Now that the Fed’s long-awaited cut has arrived, however, the improvements may be more modest than we’ve seen to date. Buyers thinking through the decision can take advantage of affordability calculators to see how their purchasing power has changed already, and weigh the pros and cons of shopping in a seasonally slow period or preparing to compete in what is likely to be a busier spring season in 2025.