Buyers shopping for homes in Lower Merion face a double squeeze: national sales have slowed to their weakest pace in more than a year, and prices keep climbing, especially in the Northeast.
Existing home sales fell 2% in August from July to a seasonally adjusted annual rate of 3.98 million units, the National Association of Realtors (NAR) reported Thursday, Sept. 10, in data first reported by the Associated Press. That marks the third straight monthly decline. Sales also dropped 1.2% compared with August 2025.
The 30-year mortgage rate hit 6.76% the week of Sept. 10, its highest level in more than 14 months. NAR Chief Economist Lawrence Yun said rates could soon reach 7%, noting the 10-year Treasury yield stood at 4.92%, a level not seen since late 2023.
"It's not a surprise home sales and mortgage rates move in the opposite direction and we have seen mortgage rates rising, rising, rising from February," Yun said.
Rising borrowing costs trace largely to the U.S.-Iran conflict that began in late February. Expectations of higher inflation amid surging oil prices have pushed up long-term bond yields, dragging mortgage rates higher. The 30-year rate had briefly dipped below 6% before the conflict started.
Northeast prices outpace the nation
Nationally, the median home sale price rose 1.6% year over year to $429,100 in August, an all-time high for the month in data going back to 1999, according to NAR. Prices have now risen on an annual basis for 38 consecutive months.
The Northeast led all regions, with prices climbing 4.3% from August 2025 amid tighter inventory than the rest of the country. Sales fell in the Northeast, Midwest and South from July; the West held flat.
Montgomery County ranks among most competitive markets
That regional pressure shows up locally.
Montgomery County ranked fifth nationally among the most competitive housing markets in August, with only 44% of homes selling below their original asking price, compared with a national average of 59.5%, according to a Redfin report released Sept. 9.
In the broader Montgomery, Bucks and Chester County market, about 43.6% of homes sold above list price in May, far exceeding the national rate of 25.8%, MONTCO.Today reported in June, citing Redfin data. Move-in-ready properties in Lower Merion, Ambler and Blue Bell were still attracting multiple offers at that time.
Lower Merion's median sale price in a recent Patch snapshot of recently closed sales was $645,000, with the highest sale at $3.5 million. The snapshot, based on Zillow data, covers a limited sample of closings rather than the full market, but it illustrates how far the township sits above the national median of $429,100.
More inventory, but not enough relief
Nationally, unsold homes rose to 1.62 million at the end of August, up 5.9% from a year earlier, according to NAR. That translates to a 4.9-month supply at the current sales pace, the highest level in over 10 years. A four- to six-month supply is traditionally considered a balanced market.
Montgomery County posted a 9.7% year-over-year jump in new listings during the four weeks ending around Aug. 2, the third-largest increase among major U.S. metros, according to Redfin data reported by Patch on Aug. 26.
Still, that new supply has not cooled competition in the township. First-time buyers made up 30% of national home purchases in August, up slightly from 28% a year earlier but still well below the historical norm of about 40%, according to NAR.
Heather Long, chief economist at Navy Federal Credit Union, said affordability remains the primary concern as prices, rates, taxes and insurance costs all run higher than a few years ago. "Americans are hitting the pause button on homebuying," Long said.
