Courtesy of the National Association of REALTORS®.
Existing-home sales in the U.S. rose 1.5% month-over-month to a seasonally adjusted annual rate of 4.06 million in September, according to the latest report from the National Association of REALTORS®. Year over year, sales rose 4.1%.
Housing inventory hit 1.55 million units, up 1.3% from August and 14% from September 2024. Given the rate of sales, the nation had a 4.6-month housing supply, up from 4.2 months a year prior.
“Inventory is matching a five-year high, though it remains below pre-COVID levels,” said Lawrence Yun, chief economist for NAR. “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.”
The median existing-home price rose 2.1% year over year to $415,000, marking the 27th straight month of annual increases. Meanwhile, the average mortgage rate was 6.35% in September, down from 6.59% a month prior but up from 6.18% a year ago.
“This month’s existing-home sales data offered a snapshot of market activity, but it doesn’t fully reflect the evolving landscape,” commented Jason Waugh, president of Coldwell Banker Affiliates. “Recent declines in mortgage rates and slowing price growth in some regions have the potential to ease affordability for many buyers and prompt renewed engagement from previously hesitant consumers.”
Waugh added that transaction timelines — which hit a median of 33 days in September — indicate that previously sidelined buyers are incredibly motivated, despite economic uncertainty.
“The people entering the market now are doing so with purpose,” Waugh explained. “Accurate pricing, guided by experienced professionals, is essential to connecting serious buyers with committed sellers and facilitating successful outcomes.”
Nearly one-third (30%) of existing-home sales were purchased by first-time homebuyers, up from 28% in August and 26% a year ago, while 15% were made by investors or second-home buyers — down from 21% a month ago and 16% in September 2024.
Regionally, existing-home sales increased month over month in the Northeast, South and West but decreased in the Midwest; year over year, they increased in the Northeast, Midwest and South and stagnated in the West.