Existing-home sales fall 3.4%
Rising interest rates contributed to pushing total existing-home sales down 3.4% to a seasonally adjusted rate 5.15 million in September, according to the National Association of Realtors (NAR).
Sales include completed transactions of single-family homes, townhomes, condominiums, and co-ops. Sales are now down 4.1% from a year ago and a rate of 5.37 million in September 2017.
Single-family home sales were at a seasonally adjusted annual rate of 4.58 million in September, down from 4.74 million in August, and are 4% below the 4.77 million sales pace from a year ago. The median existing single-family home price was $260,500 in September, up 4.6% from September 2017.
Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 570,000 units in September, down 3.4% from last month and 5% from a year ago. The median existing condo price was $239,200 in September, up 1.5% from a year ago.
“This is the lowest existing home sales level since November 2015,” said Lawrence Yun, chief economist of the NAR. “A decade’s high mortgage rates are preventing consumers from making quick decisions on home purchases. All the while, affordable home listings remain low, continuing to spur underperforming sales activity across the country.”
Regionally, September existing-home sales in the Northeast decreased 2.9% to an annual rate of 680,000, 5.6% below a year ago. The median price in the Northeast was $286,200, which is up 4.1% from September 2017.
In the Midwest, existing-home sales remained the same as last month at an annual rate of 1.28 million in September, but are still down 1.5% from a year ago. The median price in the Midwest was $200,200, up 1.9% from last year.
Sales in the South decreased 5.4% to an annual rate of 2.11 million in September, down from 2.12 million a year ago. The median price in the South was $223,900, up 3% percent from a year ago.
In the West, sales fell 3.6% to an annual rate of 1.08 million in September, 12.2% below a year ago. The median price in the West was $388,500, up 4.1% from September 2017.
The median existing-home price for all housing types in September was $258,100, up 4.2% from the September 2017 price of $247,600. September’s price increase marks the 79th straight month of year-over-year gains.
Total housing inventory at the end of September decreased from 1.91 million in August to 1.88 million existing homes available for sale, and is up from 1.86 million a year ago. Unsold inventory is at a 4.4-month supply at the current sales pace, up from 4.3 last month and 4.2 months a year ago.
Properties typically stayed on the market for 32 days in September, up from 29 days in August but down from 34 days a year ago. About 47% of homes sold in September were on the market for less than a month.
“There is a clear shift in the market with another month of rising inventory on a year over year basis, though seasonal factors are leading to a third straight month of declining inventory,” said Yun. “Homes will take a bit longer to sell compared to the super-heated fast pace seen earlier this year.”
The hottest metro areas in September were Midland, Texas; Fort Wayne, Ind.; Odessa, Texas; Boston-Cambridge-Newton, Mass.; and Columbus, Ohio, the NAR said.
“Rising interests rates coupled with increasing home prices are keeping first-time buyers out of the market, but consistent job gains could allow more Americans to enter the market with a steady and measurable rise in inventory,” Yun noted.
First-time buyers were responsible for 32% of sales in September, up from last month (31%) and a year ago (29%). NAR’s 2017 Profile of Home Buyers and Sellers
“Despite small month over month increases, the share of first-time buyers in the market continues to underwhelm because there are simply not enough listings in their price range,” said NAR President Elizabeth Mendenhall, a realtor from Columbia, Mio. and CEO of RE/MAX Boone Realty.
Sales include completed transactions of single-family homes, townhomes, condominiums, and co-ops. Sales are now down 4.1% from a year ago and a rate of 5.37 million in September 2017.
Single-family home sales were at a seasonally adjusted annual rate of 4.58 million in September, down from 4.74 million in August, and are 4% below the 4.77 million sales pace from a year ago. The median existing single-family home price was $260,500 in September, up 4.6% from September 2017.
Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 570,000 units in September, down 3.4% from last month and 5% from a year ago. The median existing condo price was $239,200 in September, up 1.5% from a year ago.
“This is the lowest existing home sales level since November 2015,” said Lawrence Yun, chief economist of the NAR. “A decade’s high mortgage rates are preventing consumers from making quick decisions on home purchases. All the while, affordable home listings remain low, continuing to spur underperforming sales activity across the country.”
Regionally, September existing-home sales in the Northeast decreased 2.9% to an annual rate of 680,000, 5.6% below a year ago. The median price in the Northeast was $286,200, which is up 4.1% from September 2017.
In the Midwest, existing-home sales remained the same as last month at an annual rate of 1.28 million in September, but are still down 1.5% from a year ago. The median price in the Midwest was $200,200, up 1.9% from last year.
Sales in the South decreased 5.4% to an annual rate of 2.11 million in September, down from 2.12 million a year ago. The median price in the South was $223,900, up 3% percent from a year ago.
In the West, sales fell 3.6% to an annual rate of 1.08 million in September, 12.2% below a year ago. The median price in the West was $388,500, up 4.1% from September 2017.
The median existing-home price for all housing types in September was $258,100, up 4.2% from the September 2017 price of $247,600. September’s price increase marks the 79th straight month of year-over-year gains.
Total housing inventory at the end of September decreased from 1.91 million in August to 1.88 million existing homes available for sale, and is up from 1.86 million a year ago. Unsold inventory is at a 4.4-month supply at the current sales pace, up from 4.3 last month and 4.2 months a year ago.
Properties typically stayed on the market for 32 days in September, up from 29 days in August but down from 34 days a year ago. About 47% of homes sold in September were on the market for less than a month.
“There is a clear shift in the market with another month of rising inventory on a year over year basis, though seasonal factors are leading to a third straight month of declining inventory,” said Yun. “Homes will take a bit longer to sell compared to the super-heated fast pace seen earlier this year.”
The hottest metro areas in September were Midland, Texas; Fort Wayne, Ind.; Odessa, Texas; Boston-Cambridge-Newton, Mass.; and Columbus, Ohio, the NAR said.
“Rising interests rates coupled with increasing home prices are keeping first-time buyers out of the market, but consistent job gains could allow more Americans to enter the market with a steady and measurable rise in inventory,” Yun noted.
First-time buyers were responsible for 32% of sales in September, up from last month (31%) and a year ago (29%). NAR’s 2017 Profile of Home Buyers and Sellers
“Despite small month over month increases, the share of first-time buyers in the market continues to underwhelm because there are simply not enough listings in their price range,” said NAR President Elizabeth Mendenhall, a realtor from Columbia, Mio. and CEO of RE/MAX Boone Realty.