Existing-home sales were at a seasonally adjusted annual rate of 4.06 million in September, an increase of 1.5% compared with August and up 4.1% compared with September 2024, according to the National Association of Realtors (NAR).
Inventory of unsold homes increased to 1.55 million units, up 1.3% compared with August and equal to 4.6-months’ supply.
The median existing-home sales price was $415,200, up 2.3% compared with a year ago.
Month-over-month, existing-home sales increased in the Northeast, South and West, but fell in the Midwest.
Year-over-year, sales increased in the Northeast, Midwest and South, and remained flat in the West.
“As anticipated, falling mortgage rates are lifting home sales,” says Lawrence Yun, chief economist for NAR, in a statement. “Improving housing affordability is also contributing to the increase in sales.”
“Inventory is matching a five-year high, though it remains below pre-COVID levels,” Yun adds. “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.”
Andrea Blais, senior vice president of real estate lending at SchoolsFirst Federal Credit Union, says existing-home sales “remain seasonally flat due to unchanged market fundamentals, namely, persistently high mortgage rates and home values.”
“As we move closer to the New Year, we expect for-sale inventory to grow and rates to slowly dip,” Blais says. “Both of these will push up home sales slightly as we inch closer to the holiday season.”
“Recent data on home sales and consumer behavior remains limited due to the ongoing government shutdown, but there are still some key takeaways from private market reports,” says Selma Hepp, chief economist for Cotality, in a statement. “The pent-up demand for home purchases remains strong, but many buyers will not enter the market until rates fall reliably below 6 percent – a target toward which the shutdown uncertainty is actually helping achieve by pressuring Treasury yields lower.”
“Simultaneously, consumer spending outlook remains cautious and vulnerable,” Hepp adds. “Despite some resilient spending from high-income households, holiday forecasts still predict a notable contraction in discretionary gift spending as high-income earners are the majority of those who can afford to purchase a home. The combination of tariff-fueled price hikes on goods and uncertainty from the shutdown is weighing heavily on overall consumer confidence, making a commitment to a massive big-ticket item like a home purchase the primary area of financial restraint.”
Photo: Scott Webb