U.S. existing home sales fell more than expected in August as house prices remained elevated despite a continued improvement in supply.

Three of the four regions recorded month-to-month gains in home sales; the Midwest was the exception, as sales held steady there. Sales decreased on an annual basis in every region except the Northeast, where they matched last year’s levels.

Sales were 4.2% lower than August 2023. It marks three straight months of sales below the 4 million mark, annualized. This count is based on closings — contracts that were likely signed in late June and July,