Key Highlights
- National Association of REALTORS® reports a 1.5% increase in existing-home sales for September.
- Total inventory has risen to a five-year high, but remains below pre-COVID levels.
- Median home prices continue to rise, up 2.1% year-over-year to $415,200.
- Falling mortgage rates are contributing to the increase in sales.
National Home Sales Report Reveals Positive Trends for September
The National Association of REALTORS® reported a 1.5% month-over-month increase in existing-home sales for September, reaching a seasonally adjusted annual rate of 4.06 million units. This growth is particularly notable as it reflects an improvement across the Northeast, South, and West regions, with only the Midwest showing a decline.
Regional Breakdown
The Northeast saw a robust 2.1% increase in sales, bringing its total to 490,000 units at an annual rate. The median price for homes in this region increased by 4.1% from the previous year to $500,300. Similarly, the South experienced a 1.6% rise in sales, reaching 1.86 million units annually, with a median price that grew 1.2%. The West reported a more significant increase of 5.5%, bringing its total to 770,000 units at an annual rate, albeit without any change year-over-year.
The Midwest experienced a slight decrease in sales by 2.1% month-over-month, but still saw an overall increase of 2.2% year-over-year, with the median price increasing to $320,800 from $309,400 in September 2024.
Market Conditions and Future Outlook
NAR Chief Economist Dr. Lawrence Yun commented, “As anticipated, falling mortgage rates are lifting home sales. Improving housing affordability is also contributing to the increase in sales.” He added that inventory levels have reached a five-year high but remain below pre-COVID levels.
Dr.
Yun further noted, “Many homeowners are financially comfortable, resulting in very few distressed properties and forced sales. Home prices continue to rise in most parts of the country, further contributing to overall household wealth.” This trend is expected to persist as the housing market remains resilient despite challenges like high mortgage rates.
According to the report, first-time homebuyers made up 30% of all transactions, an increase from 28% last month and 26% in September 2024. Cash sales accounted for 30% of transactions, unchanged from August but down slightly compared to 31% a month ago.
The median time on market increased to 33 days, up from 31 days last month and 28 days in September 2024. This suggests that homes are staying on the market longer before being sold, possibly indicating a more cautious approach by both buyers and sellers.
Expert Analysis and Future Trends
Analysts predict that while falling mortgage rates are providing some relief to potential homebuyers, ongoing economic uncertainty could temper this positive trend. Dr. Lawrence Yun noted, “While the increase in sales is encouraging, we must remain vigilant about broader economic factors that can impact the housing market.” He emphasized the importance of continued monitoring of both macroeconomic conditions and real estate-specific indicators.
The National Association of REALTORS® will release additional data on pending home sales for September on October 29, and existing-home sales for October on November 20. These reports are crucial for understanding the evolving dynamics of the housing market and formulating informed strategies for both buyers and sellers.
