Sales fell in September following flat August
Existing home sales fell 3.4% in September from a stagnant August, making an annual decline of 4.1% to 5.37 million (SAAR).
The National Association of Realtors says that existing home sales are at their lowest level since November 2015 as buyers remain cautious about mortgage rates and face continued inventory shortages.
There was an increase in inventory in September compared to a year earlier with 1.88 million homes available (1.86 million in Sept. 2017). This was down from 1.91 million in August but months of supply was up to 4.4 from 4.3 in August 2018 and 4.2 in September 2017.
"There is a clear shift in the market with another month of rising inventory on a year over year basis, though seasonal factors are leading to a third straight month of declining inventory," said NAR chief economist Lawrence Yun. "Homes will take a bit longer to sell compared to the super-heated fast pace seen earlier this year."
Prices up again
The median price of existing homes for all housing types was up 4.2% year-over-year in September.
"Rising interests rates coupled with increasing home prices are keeping first-time buyers out of the market, but consistent job gains could allow more Americans to enter the market with a steady and measurable rise in inventory," added Yun.
First-time buyers made up 32% of all buyers of existing homes in September, up from 29% a year earlier. But NAR President Elizabeth Mendenhall says that the figure is still underwhelming and entry-level homes remain highly sought-after.
