The NAR data show existing home sales down 2.5 percent in August to a 3.86 million unit seasonally adjusted annual rate after a small upward revision to 3.96 million units in July. The August level is below the consensus of 3.90 million in the Econoday survey of forecasters. Sales of single-family homes is down 2.8 percent to 3.48 million units in August. Sales of multi-unit homes is unchanged at 380,000 units in August. August sales reflect contracts signed in July and August. During that time many homebuyers remained on the sidelines in anticipation of lower mortgage rates, greater negotiating power, and more plentiful inventory to choose from.


The Freddie Mac rate for a 30-year fixed rate mortgage was at 6.95 percent in the July 4 week and started to fall almost without interruption after that. In the August 1 week the rate was down to 6.73 percent. In subsequent weeks the rate declined further and as of the September 12 week is down to 6.20 percent.

The median price of an existing home is down 1.1 percent to $416,700 in August and up 3.1 percent compared to year-ago. It is typical for the median price to decline in the second half of the year, but the underlying trend for home prices is upward. The supply of homes available for sale is up to 4.2 months in August after 4.1 in July and below 3.3 in August 2023.

NAR Chief Economist Lawrence Yun said,"Home sales were disappointing again in August, but the recent development of lower mortgage rates coupled with increasing inventory is a powerful combination that will provide the environment for sales to move higher in future months." He continued,"The home-buying process, from the initial search to getting the house keys, typically takes several months."

Listed existing homes stayed on the market an average of 26 days in August, slightly longer than 24 days in July and 20 days in August 2023. The share of homes sold to first-time buyers is 26 percent, down from 29 percent in July and 29 percent in August 2023. August matched the record low share of 26 percent in February 2024. All-cash sales accounted for 26 percent in August, down from 27 percent in July and August 2023.

After July's 3.95 and June's 3.90 million annualized rates, existing home sales in August are expected to come in at 3.90 million.

Existing home sales tally the number of previously constructed homes, condominiums and co-ops in which a sale closed during the month. Existing homes (also known as home resales) account for a larger share of the market than new homes and indicate housing market trends.

This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as home resales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio.

Even though home resales don't always create new output, once the home is sold, it generates revenues for the realtor. It brings a myriad of consumption opportunities for the buyer.

Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, home resales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the existing home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.