04:03 PM EDT, 09/18/2024 (MT Newswires) -- Existing and pending home sales declined in August to their lowest levels since the second quarter of 2020, Redfin (RDFN) reported Wednesday.

Sales of existing homes fell 1% month over month in August and were down 3.1% from August 2023. The level was the lowest on record in Redfin data going back to 2012 with the exception of May 2020, when the COVID-19 pandemic brought real estate transactions to a standstill.

Pending sales, which is a more current gauge of housing market activity and includes both existing and new homes, were down 1.9% sequentially and 2.4% on the year. Pending sales reached the lowest point on record aside from April 2020.

"Buyers are selective right now, especially if they have a house already," Redfin Premier real estate agent Michael Cendejas said. "They're looking for the perfect home at the right price."

Affordability has improved in recent months as mortgage rates have eased but rising home prices have continued to pressure monthly housing costs. Data from the Mortgage Bankers Association released Wednesday showed that the 30-year fixed rate for conforming loan balances fell to its lowest level since September 2022 last week.

The Federal Reserve lowered interest rates by 50 basis points on Wednesday in its first cut since March 2020.

The median home sales price rose 3% to $433,101 last month, the smallest increase in nearly a year but only 2.1% shy of the all-time high set in June, according to Redfin. Its agents have reported that some house hunters are waiting to buy in hopes mortgage rates fall further.

In other "good news for homebuyers," new listings were up 1.6% in August to the highest seasonally-adjusted level in nearly two years, Redfin said.

Price: 14.15, Change: -0.06, Percent Change: -0.42