National Real Estate Market Update – August 2025

Sales Hold Steady as Prices Continue to Rise

U.S. existing-home sales edged down 0.2% in August, according to the National Association of REALTORS® (NAR), to a seasonally adjusted annual rate of 4.0 million. While the national market stayed relatively flat month-over-month, year-over-year sales ticked up 1.8%, showing signs of stabilization.

Market Trends and Inventory

Housing inventory stood at 1.53 million units, down 1.3% from July but up 11.7% compared to August 2024. The current supply represents 4.6 months of unsold inventory, unchanged from July but higher than a year ago (4.2 months).

NAR Chief Economist Lawrence Yun noted that conditions may improve as mortgage rates ease and listings increase:

“Mortgage rates are declining and more inventory is coming to the market, which should boost sales in the coming months.”

Home Prices Remain on the Rise

The median existing-home price in August reached $422,600, up 2.0% from August 2024. This marks the 26th consecutive month of year-over-year price gains.

• Single-family homes: $427,800 (+1.9% YoY)

• Condos/co-ops: $366,800 (+0.6% YoY)

Regional Sales Overview

• Northeast: Sales fell 4.0% MoM and 2.0% YoY. Median price: $534,200 (+6.2%)

• Midwest: Sales rose 2.1% MoM and 3.2% YoY. Median price: $330,500 (+4.5%)

• South: Sales slipped 1.1% MoM but rose 3.4% YoY. Median price: $364,100 (+0.4%)

• West: Sales rose 1.4% MoM but declined 1.4% YoY. Median price: $624,300 (+0.6%)

Buyer & Seller Activity

• Homes stayed on the market for a median of 31 days, up from 28 in July and 26 a year ago

• First-time buyers: 28% of sales (steady from July, up from 26% last year)

• Cash sales: 28% of transactions (down from 31% in July, up from 26% last year)

• Investors/second-home buyers: 21% of sales (up slightly from 20% in July)

• Distressed sales: 2%, unchanged from July

Mortgage Rates & Affordability

The average 30-year fixed mortgage rate fell to 6.59% in August, down from 6.72% in July and slightly lower than 6.50% a year ago. While rates remain elevated compared to historic norms, this dip provides some relief for buyers.

What This Means for East Tennessee

The South continues to be a strong regional performer, with year-over-year sales rising 3.4% and price growth holding steady at just 0.4%. East Tennessee’s relative affordability, strong in-migration, and resilient job market position it well compared to higher-priced regions like the Northeast and West.

For buyers, easing mortgage rates and growing inventory create opportunities to act before competition heats up again. For sellers, demand remains steady, and well-priced homes continue to attract attention quickly.

As fall approaches, this is a great time to review your options—whether that means preparing to list, refinancing, or watching for new inventory to hit the market.

Krista Freshour

Realtor

865-776-9608

Information provided by National Association of Realtors