Home sales fall in August despite the highest supply in over a decade

Previously owned home sales declined in August, with the National Association of Realtors reporting a 2% month-over-month drop to 3.98 million units on a seasonally adjusted, annualized basis. Year-over-year sales were down 1.2%, representing the slowest sales activity since June 2025. The Northeast and Midwest regions experienced the most pronounced weakness in transaction volume.
Mortgage rate increases in mid-July, when many of these August closings were contracted, contributed to the sales