by Sales also declined 1% from August as prices continue to rise in all 4 regions of the US
WASHINGTON — Year-over-year existing home sales declined 3.5% in September, continuing a downward trajectory as consumers await further cost reductions resulting from lower interest rates.
According to figures released by the National Association of Realtors on Wednesday, existing home sales totaled 3.84 million in September, which was down from nearly 4 million in September 2023. They also fell 1% from August, with the Northeast, Midwest and South posting year-over-year and monthly declines, while the West experienced an uptick in both year-over-year and monthly sales from August.
Year-over-year prices rose in all four regions according to the report, with the median price rising 3% from September 2023 to $404,500, which the NAR said was the 15th consecutive month of year-over-year increases.
“Home sales have been essentially stuck at around a 4-million-unit pace for the past 12 months, but factors usually associated with higher home sales are developing,” said NAR Chief Economist Lawrence Yun in a statement. “There are more inventory choices for consumers, lower mortgage rates than a year ago and continued job additions to the economy. Perhaps, some consumers are hesitating about moving forward with a major expenditure like purchasing a home before the upcoming election.”
Sales of existing single-family homes totaled 3.47 million in September, or about 90.4% of the total, which was down 2.3% from September 2023. The median existing single-family home price was $409,000, up 2.9% from September 2023.
Existing condominium and co-op sales totaled 370,000 units, down 14% from 430,000 in September 2023. The median price was $361,600 in September, up 2.2% from $353,900 in September 2023.
Many were hoping that a late-summer interest rate drop would help boost home sales. The report noted that according to Freddie Mac, the 30-year fixed rate mortgage averaged 6.44% as of Oct. 17, which was down from 7.63% a year ago and up from 6.32% a week prior.
The continuing slowdown likely means that many are waiting for interest rates to fall further before moving into either new construction or into an existing home. That potentially could continue slow activity at retail in the weeks and months ahead or at least until after the election, as Yun suggests.
The report went on to note that the total housing inventory at the end of September was 1.39 million units, up 23% from 1.13 million in September 2023 and up 1.5% from August. It added that unsold inventory in September was at a 4.3-month supply at the current sales pace, which was up from 3.4 months in September 2023 and up from 4.2 months in August.
“More inventory is certainly good news for home buyers as it gives consumers more properties to view before making a decision,” Yun added. “However, the inventory of distressed properties is minimal because the mortgage delinquency rate remains very low. Distressed property sales accounted for only 2% of all transactions in September.”
By region the activity was as follows:
+ In the Northeast, existing home sales totaled 460,000, down 6.1% from September 2023 and down 4.2% from August. The median price was $467,100, up 6% from last year.
+ In the Midwest, existing home sales totaled 900,000, down 5.3% from September 2023 and down 2.2% from August. The median price was $306,600, up 5% from September last year.
+ In the South, existing home sales totaled 1.72 million, down 5.5% from last year and down 1.7% from August. The median price was $359,700, up .8% from last year.
+ In the West, existing home sales totaled 760,000, up 5.6% from September 2023 and up 4.1% from August. The median price was $616,400, up 1.7% from September 2023.
Other key findings in the report were as follows:
+ Properties typically were on the market for 28 days in September, up from 21 days in September 2023 and up from 26 days in August.
+ First-time buyers were responsible for 26% of sales in September, which was down from 27% in September 2023. It matched an all-time low from August and November 2021.
+ All-cash sales accounted for some 30% of transactions in September, which was up from 29% last year, and up from 26% in August. Individual investors, or second-home buyers that are said to make up many all-cash sales, purchased 16% of existing homes in September, down from 18% from last year and down from 19% in August.
+ Distressed sales, including foreclosures and short sales, accounted for 2% of sales in September, which the NAR said was level with September 2023 and August.
