O
n Aug. 27, 2025 a “sold” sign appeared outside a San Francisco home (photo: Justin Sullivan/Getty Images). According to the National Association of Realtors, sales of existing homes were essentially flat in August, with 4 million units on a seasonally adjusted, annualized basis—just a 0.2 % dip from July but a 1.8 % rise over August 2024. The Midwest led the market, while the Northeast lagged.

    These figures reflect closings, so transactions signed in June and July—when mortgage rates were roughly 50 basis points higher—are included, but the sharp rate decline that began in September is not yet reflected. The upper end of the market is outperforming the lower end: homes priced above $1 million grew 8 % year‑over‑year, the strongest segment, whereas properties below $100 k fell more than 10 % from a year ago. “Record‑high housing wealth and a record‑high stock market will help current homeowners trade up and benefit the upper end of the market. However, sales of affordable homes are constrained by the lack of inventory,” said Lawrence Yun, NAR chief economist.

    The Midwest’s performance is tied to more affordable conditions; its median price is 22 % below the national median. Supply dynamics are shifting: after a steep rise earlier this year, inventory fell 1.3 % from July, marking the first monthly drop since the start of the year, though it remains 11.7 % higher than a year ago. Sellers, facing weaker prices and higher rates, are either pulling off the market or delaying listings. August’s 4.6‑month supply indicates a lean market.

    Price momentum continues: the median sale price in August was $422,600, up 2 % from last year and the 26th straight month of gains. Homes linger longer on the market—31 days on average in August versus 26 days in August 2024. First‑time buyers represent a historically low 28 % of sales, while all‑cash buyers hold a 28 % share, up from 26 % a year earlier.

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