NAR: August existing-home sales fall 2% with regional variations
The National Association of REALTORS reported that existing-home sales decreased by 2.0% in August 2026. Sales were unchanged in the West but declined in the Northeast, Midwest, and South, according to the monthly data.
August’s 2% dip in existing-home sales followed a period of relative stability, with the West holding flat while other regions saw pullbacks. Year-over-year figures show the South unchanged, but the Northeast, Midwest, and West all recorded declines. The inventory picture has shifted notably: the current 4.9-month supply marks the highest level in over a decade, suggesting a more balanced market than recent years.
NAR’s chief economist attributes the slowdown to elevated mortgage rates, yet points to countervailing forces. Wage growth of 3.1% in August and 643,000 net new jobs since January have kept demand resilient. Home prices continue to rise, and sales through the first eight months remain 1.6% ahead of last year’s pace, indicating that affordability pressures have not fully suppressed buyer interest.
This report could signal a gradual cooling in housing activity, giving buyers more negotiating power after years of tight supply. Sellers may need to adjust price expectations, while renters and first-time buyers could benefit from increased options. However, rising prices and high mortgage rates may still exclude many households, potentially widening the gap between those who can afford a home and those who cannot. The trend could influence broader economic sentiment, as housing often mirrors consumer confidence and spending.