Existing-Home Sales Surge 1.5% in September, Inventory Hits High
UPDATE: Existing-home sales in the U.S. have surged 1.5% month-over-month, reaching a seasonally adjusted annual rate of 4.06 million in September. This latest report from the National Association of REALTORS® confirms a year-over-year increase of 4.1%, signaling a robust housing market amid economic fluctuations.
Housing inventory has also seen a significant rise, hitting 1.55 million units, up 1.3% from August and an impressive 14% compared to September 2024. This development translates to a 4.6-month4.2 months last year, reflecting a market that is gradually balancing against the backdrop of rising demand.
Lawrence Yun, chief economist for NAR, stated, “Inventory is matching a five-year high, though it remains below pre-COVID levels.” This balance is critical as many homeowners are financially stable, resulting in fewer distressed properties.
The median existing-home price continues its upward trajectory, now at $415,000, marking a 2.1% increase year-over-year and the 27th straight month of annual price growth. The average mortgage rate dropped to 6.35% in September, down from 6.59% in August, yet up from 6.18% a year ago, indicating some relief for buyers navigating the market.
“September’s existing-home sales data provides a snapshot of market activity, but it doesn’t fully reflect the evolving landscape,” said Jason Waugh, president of Coldwell Banker Affiliates. Recent declines in mortgage rates could enhance affordability for many buyers and encourage previously hesitant consumers to re-enter the market.
Transaction timelines are also noteworthy, with a median of 33 days for existing-home sales in September. Waugh emphasized that current buyers are entering the market with intention, stating, “Accurate pricing, guided by experienced professionals, is essential to connecting serious buyers with committed sellers.”
In a significant trend, nearly 30% of existing-home sales were made by first-time homebuyers, up from 28% in August and 26% a year ago. Meanwhile, sales to investors or second-home buyers decreased to 15%, down from 21% in August and 16% in September 2024.
Regionally, the report highlights that existing-home sales increased in the Northeast, South, and West compared to the previous month, while the Midwest saw a decline. Year-over-year figures show growth in the Northeast, Midwest, and South, with stagnation in the West.
As the housing market adapts to these shifts, all eyes will be on how buyers respond to changing mortgage rates and evolving economic conditions. The landscape is developing, and stakeholders are optimistic about the potential for a revitalized market.
Stay tuned for further updates as this story unfolds, and keep an eye on housing trends that could impact your home buying and selling decisions.
