Home sales fell in August as nation's supply rises to highest level in a decade

Sales of previously owned homes fell in August as high prices and higher mortgage rates made buyers wary. 

Between July and August, sales fell 2% to 3.98 million units on a seasonally adjusted, annualized basis, CNBC reported, citing the National Association of Realtors. Year over year, sales were down 1.2%. 

This was the slowest pace since June 2025, with the Northeast and Midwest showing the most sluggish sales. 

The supply of houses for sale totaled 1.62 million units at the end of August, up 3.2% from July and up nearly 6% from the year before. At the current sales pace, the figure is a 4.9-month supply, which is the highest in over a decade. 

Despite the increased supply and slow sales pace, home prices continued to rise. The median price of a home sold in August was $429,100, up 1.6% from August 2025, a new record high for the month of August.

The figures are based on closings, meaning the contracts were likely signed in June and July, when mortgage rates were higher than they were in spring. Rates moved considerably higher in the middle of July.