Existing-home sales slip in September

Existing-home sales declined for the eighth month in a row, the National Association of Realtors reported this morning.

Total existing-home sales decreased 1.5% in September to a seasonally adjusted annual rate of 4.71 million compared to the August report. This includes completed transactions of single-family homes, townhomes, condominiums, and co-ops.

Year-over-year, sales plummeted by 23.8% and are down from 6.18 million in September 2021.

Single-family home sales declined to a seasonally adjusted annual rate of 4.22 million in September, down 0.9% from 4.26 million in August and down 23% from the previous year. 

“The housing sector continues to undergo an adjustment due to the continuous rise in interest rates, which eclipsed 6% for 30-year fixed mortgages in September and are now approaching 7%,” said NAR Chief Economist Lawrence Yun. “Expensive regions of the country are especially feeling the pinch and seeing larger declines in sales.”

The median existing-home price for all housing types in September was $384,800, an 8.4% jump from September 2021 and a price of $355,100. With prices climbing in all four major U.S. regions, the latest report indicates 127 consecutive months of year-over-year increases and the longest-running streak on record.

The median existing single-family home price was $391,000 in September, up 8.1% from September 2021.

Total housing inventory registered at the end of September was 1.25 million units, down 2.3% from August and 0.8% from the previous year. Unsold inventory sits at a 3.2-month supply at the current sales pace – unchanged from August and up from 2.4 months in September 2021.

“Despite weaker sales, multiple offers are still occurring with more than a quarter of homes selling above list price due to limited inventory,” Yun added. “The current lack of supply underscores the vast contrast with the previous major market downturn from 2008 to 2010, when inventory levels were four times higher than they are today.”

According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.11% in September, up from 5.22% in August. The average commitment rate across all of 2021 was 2.96%.

Realtor.com^®’s Market Trends Report in September shows that the largest year-over-year median list price growth occurred in Miami (+28.3%), Memphis (+27.3%), and Milwaukee (+27.0%). 

Phoenix reported the highest increase in the share of homes that had their prices reduced compared to last year (+32.3 percentage points), followed by Austin (+27.4 percentage points) and Las Vegas (+20.0 percentage points).

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 490,000 units in September, down 5.8% from August and 30.0% from one year ago. The median existing condo price was $331,700 in September, an annual increase of 9.8%.

Here’s how existing-home sales performed on a regional basis:

• Existing-home sales in the Northeast dwindled 1.6% from August to an annual rate of 610,000 in September, retreating 18.7% from September 2021. The median price in the Northeast was $418,500, an increase of 8.3% from one year ago.
• Existing-home sales in the Midwest slid 1.7% from the previous month to an annual rate of 1,140,000 in September, falling 19.7% from September 2021. The median price in the Midwest was $281,500, up 6.9% from the prior year.
• In the South, existing-home sales pulled back 1.9% in September from August to an annual rate of 2,080,000, a decline of 23.8% from this time last year. The median price in the South was $351,700, an increase of 11.8% from September 2021.
• Existing-home sales in the West were identical to last month at an annual rate of 880,000 in September, but down 31.3% from one year ago. The median price in the West was $595,400, a 7.1% increase from September 2021.