Sales of previously owned U.S. homes experienced a decline in August, dropping to the slowest annual pace in nearly a year. Despite a decrease in mortgage rates and an increase in available properties on the market, existing home sales fell by 2.5% last month to a seasonally adjusted annual rate of 3.86 million, as reported by the National Association of Realtors.
Compared to August of the previous year, sales were down by 4.2%. The latest figures fell short of the 3.9 million pace that economists had anticipated, according to FactSet. However, home prices continued to rise, marking a 3.1% increase from the previous year, with the national median sales price reaching $416,700.
Chief economist Lawrence Yun from the NAR expressed his views on the situation, stating that while home sales in August were disappointing, the combination of lower mortgage rates and a growing inventory presents a promising scenario for future months. This development is expected to create an environment conducive to higher sales in the upcoming period.
