UPDATE: Existing-home sales in the U.S. have surged 1.5% in September, reaching a seasonally adjusted annual rate of 4.06 million homes sold, according to the National Association of REALTORS® (NAR). This marks a 4.1% increase compared to the same month last year. The latest data, released just hours ago, highlights a significant shift in the housing market amid evolving economic conditions.
The housing inventory has also risen to 1.55 million units, reflecting a 1.3% increase from August and an impressive 14% from September 2023. With sales at this pace, the nation now has a 4.6-month supply of homes, up from 4.2 months a year ago.
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 fewer distressed properties on the market. This stability has led to a continued rise in home prices, which are now averaging $415,000, marking a 2.1% year-over-year increase. This is the 27th consecutive month of annual price growth.
The average mortgage rate fell to 6.35% in September, down from 6.59% in August but higher than 6.18% a year prior. This decline in mortgage rates could be easing affordability challenges for potential buyers, with many showing renewed interest in the market.
Jason Waugh, president of Coldwell Banker Affiliates, commented on the current market climate: “This month’s existing-home sales data offered a snapshot of market activity, but it doesn’t fully reflect the evolving landscape.” He noted that transaction timelines have shortened to a median of 33 days, indicating that motivated buyers are actively engaging despite economic uncertainties.
The data also reveals that nearly 30% of existing-home sales were made by first-time homebuyers, up from 28% in August and 26% a year ago. Meanwhile, sales by investors or second-home buyers dropped to 15%, down from 21% in August.
Regionally, existing-home sales experienced increases in the Northeast, South, and West, while the Midwest saw a decline. Year-over-year comparisons show growth in the Northeast, Midwest, and South, with stagnation in the West.
As the housing market continues to evolve, potential buyers and sellers should stay informed about these critical developments. With inventory levels rising and prices continuing to climb, experts urge consumers to act quickly and wisely to capitalize on current opportunities.
Stay tuned for further updates on this rapidly changing market landscape.
