At a Glance:

• Existing-home sales declined 0.2% in August, but rose 1.8% year-over-year.¹
• New home sales surged 20.5% to a seasonally adjusted annual rate of 800,000.²
• Regional trends varied across both markets, with notable gains in the Midwest and South.

The latest home sales data revealed a split in buyer behavior. The National Association of Realtors reported that existing-home sales declined 0.2% in August to a seasonally adjusted annual rate of 4.10 million, following a 2.2% increase in July. Despite the monthly dip, sales were 1.8% higher than a year ago.³

In contrast, new home sales surged 20.5% in August, reaching a seasonally adjusted annual rate of 800,000—the highest level since January 2022, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.⁴

While both reports measure finalized transactions, they reflect different segments of the housing market. The existing-home sales report tracks resales of previously owned homes, which make up the majority of U.S. housing activity. The new home sales report, on the other hand, focuses on newly constructed single-family homes and is often more sensitive to changes in construction activity, builder incentives, and financing options.

Existing-Home Sales: Regional Shifts and Price Growth

August’s existing-home sales data showed mixed regional performance. Month-over-month, sales increased in the Midwest (+1.0%) and West (+2.3%), while declining in the Northeast (-2.9%) and South (-1.1%). These shifts may reflect regional differences in inventory availability, affordability, and buyer sentiment.

Year-over-year, the Midwest and South posted gains, while the Northeast and West saw declines. The South remains the largest regional market, accounting for 45% of all existing-home sales.

The median existing-home price in August was $407,100, up 3.9% from August 2024. This marks the third consecutive month of year-over-year price increases, driven in part by limited inventory and sustained buyer demand. According to NAR, total housing inventory at the end of August was 1.1 million units, unchanged from July and down 0.9% from one year ago.

New Home Sales: Strong Demand and Builder Inventory

New home sales posted strong gains across all regions in August. The Northeast led with a 72.2% increase, followed by the South (+24.7%), Midwest (+12.7%), and West (+5.6%). While the Northeast represents a smaller share of national new construction, its sharp increase may reflect pent-up demand or seasonal shifts in builder activity.

The median sales price of new homes sold in August was $430,300, while the average price was $514,000. These figures reflect a modest increase from July and suggest that buyers remain active in the higher price tiers, particularly in markets where new construction offers more flexibility than resale inventory.

Mortgage Rates Trends

Sales data for August reflects transactions that closed during the month, meaning buyers may have locked in rates anytime from June through August. During that period, average mortgage rates were in the mid-to-high 6% range.

August sales activity occurred during a period of relatively high mortgage rates, with most buyers locking in rates in the mid-to-high 6% range. Rates began to decline in late August and fell below 6.4% in early September—the first time under that threshold since October 2024. They've remained below 6.4% since then, despite edging upward following the Federal Reserve’s September 17 rate cut.⁵

“August sales activity occurred during a period of relatively high mortgage rates, yet we still saw strong demand for new construction,” said Brett Hively, Senior Vice President and Mortgage Capital Markets and Financial Strategist at Ameris Bank. “With rates dipping in late August and early September, the next round of data may help clarify whether that shift extended the momentum we saw in new homes sales and if we see a pickup on existing home sales."


Sources:
^{1, 3} https://www.nar.realtor/newsroom/nar-existing-home-sales-report-shows-0-2-decrease-in-august 
^{2, 4} https://www.census.gov/construction/nrs/pdf/newressales.pdf
⁵ https://www2.optimalblue.com/obmmi

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank does not endorse nor is affiliated with the companies listed in this article.