Existing-home sales fall for seventh month running

Total housing inventory dropped 1.5% from July to 1.28 million units in August. Unsold inventory sits at a 3.2-month supply at the current sales pace – unchanged from July and up from 2.6 months a year ago.

“Inventory will remain tight in the coming months and even for the next couple of years,” Yun said. “Some homeowners are unwilling to trade up or trade down after locking in historically-low mortgage rates in recent years, increasing the need for more new-home construction to boost supply.”

Read more: US residential construction tops expectations

For all housing types, the median existing-home price was $389,500, about 7.7% higher than last year ($361,500). According to NAR, the August price jump marks 126 consecutive months of year-over-year increases, the longest-running streak on record.

However, the median sales price retreated the second month in a row after reaching a record high of $413,800 in June – the usual seasonal trend of prices declining after peaking in the early summer.