Kira Witherwax

U.S. existing-home sales rose 1.5% monthly and 4.1% yearly to a 4.06M pace as mortgage rates fell. Inventory increased and prices continued rising. Locally, new listings fell 3.8%, pending sales jumped 20.3%, and inventory rose 13.7%. Median price climbed to $289,500, with days on market and months supply both increasing.

The home sale capital gains exclusion helps homeowners adjust their living situations without major tax burdens. Those who’ve lived in their home for two of the past five years can exclude up to $250,000 ($500,000 for couples) in profits. However, these limits haven’t changed since 1997, and rising home values mean many exceed them. Updating thresholds to match inflation would protect homeowners and sustain a healthy housing market.

U.S. existing-home sales rose 2.0% MoM and 0.8% YoY to 4.01M units (NAR), above forecasts of 3.92M. Sales rose in the West, South, and Northeast but fell in the Midwest. New listings rose 11.3%, pending sales 17.3%, and inventory 14.2%. Median sales price jumped 14.2% to $283,750. Days on market fell 6.8% to 69. Nationally, 1.55M homes were for sale in August—up 15.7% YoY—representing a 4.6-month supply. Median price rose 0.2% YoY to $422,400.