A slight uptick for the month was encouraging and the possibility for lower mortgage prices as the Fed lowers interest rates could help going forward.
The National Association of Realtors said existing home sales remained relatively stable in September, the last month figures are available, increasing by 1.5 percent compared to August but up 4.1 percent from a year ago. Sales increased on an annual basis in all regions except the West, where sales were flat compared to September 2024, it said.
With the recent cuts in the prime rate by the Federal Reserve the industry is hopeful this will be reflected in increased housing activity as mortgage rates decline. This comes as unsold inventory continues to rise in the existing home sector of the marketplace.
“Inventory is matching a five-year high, though it remains below pre-COVID levels,” says NAR chief economist Lawrence Yun. “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.”
For September, sales of existing homes increased to a seasonally adjusted annual rate of 4.06 million while unsold inventory increased to approximately 1.55 million units. That’s equal to about four-and-one-half month’s supply.
Median existing home sales prices continue to grow, increasing 2.1 percent to $415,200 in September, the NAR said, with single-family sales increasing 1.7 percent to a seasonally adjusted annual rate of 3.69 million, up 4.5 percent compared to September 2024. The median home price for single-family homes increased 2.3 percent annually to $420,700.
