Existing-home sales in the United States increased by 1.5% in September, reaching a seasonally adjusted annual rate of 4.06 million, according to the latest report from the National Association of REALTORS® (NAR). This marks a 4.1% rise in sales compared to the same month last year. Additionally, housing inventory rose to 1.55 million units, reflecting a 1.3% increase from August and a substantial 14% increase from September 2023.
The current inventory provides a 4.6-month supply of housing based on the sales rate, up from 4.2 months at the same time last year. Lawrence Yun, chief economist for NAR, stated, “Inventory is matching a five-year high, though it remains below pre-COVID levels.” He emphasized that many homeowners are financially stable, resulting in few distressed properties and forced sales.
In terms of pricing, the median existing-home price rose 2.1% year over year, reaching $415,000. This increase marks the 27th consecutive month of annual price growth. The average mortgage rate stood at 6.35% in September, a decrease from 6.59% in August, yet higher than the 6.18% reported a year ago.
Market Dynamics and Buyer Engagement
The existing-home sales data provides a glimpse into the current market, though it does not capture the full scope of changes in buyer behavior. Jason Waugh, president of Coldwell Banker Affiliates, noted that recent declines in mortgage rates, along with slowing price growth in certain areas, could improve affordability for many buyers. This may entice previously hesitant consumers back into the market.
Waugh remarked, “The people entering the market now are doing so with purpose,” highlighting that transaction timelines have shortened, with a median of 33 days in September. This suggests that motivated buyers are actively pursuing property despite ongoing economic uncertainties. He emphasized the importance of accurate pricing and professional guidance in successfully connecting serious buyers with committed sellers.
First-time homebuyers accounted for nearly 30% of existing-home sales in September, an increase from 28% in August and 26% a year earlier. In contrast, sales made by investors or second-home buyers decreased to 15%, down from 21% in August and 16% in September 2023.
Regional Sales Trends
Regionally, existing-home sales exhibited varied trends in September. Sales rose month over month in the Northeast, South, and West, while the Midwest saw a decline. Year over year, sales increased in the Northeast, Midwest, and South, but remained stagnant in the West.
These figures underscore the complex dynamics of the U.S. housing market. As conditions evolve, the interplay between inventory levels, mortgage rates, and buyer engagement will be crucial in shaping future trends.
