Existing-home sales jumped in August to the fastest pace in over a decade

Existing-home sales increased for the third consecutive month in August, as the U.S. housing market continued its rebound from the coronavirus pandemic.

Total existing-home sales rose 2.4% from July to a seasonally-adjusted, annual rate of 6 million, the National Association of Realtors reported Tuesday. It was the fastest pace of home sales recorded since December 2006. Compared with a year ago, home sales were up 10.5%.

Economists polled by MarketWatch had projected existing-home sales to rise to a median rate of 6.03 million.

The Northeast experienced the biggest jump in sales, with a 13.8% increase from July. All regions reported an increase in sales, though the pace of sales was only up 0.8% in the West and the South. In the case of the West, economists noted that the ongoing wildfires across much of that region could be hampering sales activity, while the South likely displayed the effects of Hurricane Laura and Tropical Storm Marco.

As sales increased, so did prices. The median existing-home price was $310,600 in August, up 11.4% from a year ago. Tightening inventory contributed to the rise in prices. Unsold inventory sat at a 3-month supply in August, down from 3.1 months in July and a 4-month supply a year ago. A 6-month supply of homes is generally considered to be indicative of a balanced market.