Median price in all regions jumped in September
The downward trend in sales of existing-homes continued in September for the second month in a row, with all four major regions experiencing a drop in sales.
The National Association of Realtors reported that total existing-home sales declined 2.2% month over month to a seasonally adjusted annual rate of 5.38 million. However, overall sales went up 3.9% year over year.
NAR Chief Economist Lawrence Yun said that despite historically low mortgage rates, the housing shortage across the United States has held back sales from increasing.
"We must continue to beat the drum for more inventory," Yun said. "Home prices are rising too rapidly because of the housing shortage, and this lack of inventory is preventing home-sales growth potential."
Total housing inventory sat at 1.83 million, almost equal to figure recorded in August but down 2.7% from 1.88 million a year ago. At the current sales pace, unsold inventory edged up to a 4.1-month supply from 4 months in August but down from the 4.4-month figure recorded in September 2018.
The median existing-home price for all housing types rose 5.9% year over year to $272,100 as prices in all regions soared. The increase marked the 91 consecutive months of annual gains, according to NAR.
The share of first-time homebuyer also grew in September. First-time buyers drove 33% of sales, up 31% in August, and 32% in September 2018. Meanwhile, second-home buyers bought 14% of homes, unchanged from last month but down from 16% last year. All-cash sales accounted for 17% of transactions.
"For families on the sidelines thinking about buying a home, current rates are making the climate extremely favorable in markets across the country," said NAR President John Smaby. "These traditionally low rates make it that much easier to qualify for a mortgage, and they also open up various housing selections to buyers everywhere."
Regional Breakdown
September existing-home sales in the Northeast dropped 2.8% to an annual rate of 690,000, a 1.5% increase from the prior year. The median price in the Northeast was $301,100, up 5.2% from September 2018.
In the Midwest, existing-home sales fell 3.1% to an annual rate of 1.27 million, almost unchanged from last year. The median price in the Midwest was $213,500, a 7.2% gain from a year ago.
The South saw a 2.1% decrease in existing-home sales, dwindling to an annual rate of 2.28 million but up 6% from the previous year. The median price in the South was $237,300, a 6.3% jump from September last year.
Existing-home sales in the West inched down 0.9% to an annual rate of 1.14 million, 5.6% above a year ago. The median price in the West was $403,600, up 4.5% from last year.
