Existing-Home Sales Rise 1.5% to 3.99M, but Rates Cloud Outlook
U.S. existing-home sales rose 1.5% in September to a seasonally adjusted annual rate of 3.99 million, the National Association of Realtors reported on Tuesday. Economists polled by Reuters had expected a decline to about 3.95 million. Sales were still 2.2% lower than a year earlier.
What are the key numbers?
- Sales pace: 3.99 million, up from August's pace, which NAR revised down to 3.93 million from the 3.98 million first reported
- Inventory: 1.60 million homes for sale, up 1.9% from August and 4.6% from a year ago, the highest level since November 2019
- Months of supply: 4.8, unchanged from August and up from 4.5 months a year ago
- Median price: $417,500, up 1.3% from a year earlier, the 39th straight month of annual gains and the highest September median on record
What did NAR's economist say?
Chief economist Lawrence Yun said that, despite the small monthly gain, August and September were the two slowest months for home sales this year. He said rising inventory and longer marketing times are giving buyers more negotiating power, and that the market is very tough, especially with mortgage rates rising.
Why does the sales pace matter?
The annual pace has hovered near 4 million since 2023, well below the historical norm of about 5.2 million. September was the second straight month under 4 million.
What should buyers and sellers take from it?
Buyers have more choice than at any time in about seven years. Sellers face a market where price and condition matter more.