Existing-home sales continued their downward trajectory in September, declining 3.5 percent year over year and 1 percent month over month, according to data released Wednesday by NAR.
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Existing-home sales continued their downward trajectory in September, falling 3.5 percent annually and 1 percent since last month for a seasonally adjusted annual rate of 3.84 million, according to the National Association of Realtors.
This slight decrease followed a larger decline in August, when sales fell 4.2 percent year over year and 2.5 percent month over month to a rate of 3.86 million. The sales figures include completed transactions for single-family homes, townhomes, condominiums and co-ops.
The median price of existing homes in September rose to $404,500, marking a 3 percent increase from $392,700 a year ago. In comparison, August saw a higher median price of $416,700, representing a 3.1 percent increase year over year.
September’s price rise also marked the 15th-consecutive month of annual increases, with all four U.S. regions registering price growth in both months. Sales, on the other hand, decreased across three of the four major U.S. regions in September, with the West being the exception, where sales saw an uptick.
Lawrence Yun
National Association of Realtors Chief Economist Lawrence Yun noted that while home sales have remained relatively stable, factors that typically contribute to higher sales are beginning to emerge.
“Home sales have been essentially stuck at around a four-million-unit pace for the past 12 months, but factors usually associated with higher home sales are developing,” Yun said. “There are more inventory choices for consumers, lower mortgage rates than a year ago and continued job additions to the economy. Perhaps, some consumers are hesitating about moving forward with a major expenditure like purchasing a home before the upcoming election.”
In September, housing inventory increased to 1.39 million units, up 1.5 percent from August and 23 percent from the previous year when it stood at 1.13 million. Unsold inventory represented 4.3 months of supply at the current sales pace, a slight increase from 4.2 months in August and 3.4 months a year ago.
Yun added that the rise in inventory is positive for buyers, providing more options for them to consider. However, he emphasized that distressed properties remain minimal, as the mortgage delinquency rate is still very low, with distressed sales accounting for only 2 percent of all transactions in September.
“Moderating home price increases are welcome news for homebuyers,” Yun said. “With wage growth now outpacing home price appreciation, housing affordability will improve.”
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