Existing home sales fell back in September to a seasonally adjusted annual rate of 3.84 million, per the latest report from the National Association of Realtors (NAR). Year-over-year, sales waned 3.5% (down from 3.98 million in September 2023).
Three out of four major U.S. regions registered monthly sales declines while the West experienced a sales bounce. Year-over-year, sales fell in three regions but grew in the West.
“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,” said NAR Chief Economist Lawrence Yun. “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.”
Total housing inventory edged up 1.5% from August to 1.39 million units. The inventory figure was up 23% from one year ago (1.13 million). Unsold inventory sits at a 4.3-month supply at the current sales pace, up from 4.2 months in August and 3.4 months in September 2023.
“More inventory is certainly good news for home buyers as it gives consumers more properties to view before making a decision,” Yun said. “However, the inventory of distressed properties is minimal because the mortgage delinquency rate remains very low. Distressed property sales accounted for only 2% of all transactions in September.”
The median existing-home price for all housing types in September was $404,500, up 3% from one year ago ($392,700). All four U.S. regions registered price increases.
“Moderating home price increases are welcome news for home buyers,” Yun added. “With wage growth now outpacing home price appreciation, housing affordability will improve.”
According to NAR's monthly confidence index, properties stayed on the market for 28 days in September, up from 26 in August and 21 days in September 2023. First-time buyers made up 26% of sales, matching the all-time low, and down from 27% last year.
All-cash sales accounted for 30% of all sales, up from 26% in August. Investors bought 16% of homes, down from 19% in August. Distressed sales, meaning foreclosures and short sales, held steady representing 2% of sales during September.
Single-family home sales dropped 0.6% to 3.47 million, while the median price rose 2.9% to $409,000. Condo/co-op sales fell 5.1% to 370,000 units, with prices up 2.2% to $361,600.
Regional Breakdown
Existing home sales fell in the Northeast by 4.2% to 460,000 and in the Midwest by 2.2% to 900,000, with median prices rising 6% and 5%, respectively. In the South, sales dropped 1.7% to a rate of 1.72 million during September, with a 0.8% median price increase. The West saw a 4.1% sales increase to 760,000, with prices up 1.7% year-over-year.
