Sales of existing homes in the United States have dropped to their lowest level since 1995, the National Assn. of Realtors reported Wednesday. Sales fell 1% in September and are down 3.5% from a year earlier.
“Home sales have been essentially stuck at around a four-million-unit pace for the past 12 months, but factors usually associated with higher home sales are developing,” NAR Chief Economist Lawrence Yun said in a statement.
“There are more inventory choices for consumers, lower mortgage rates than a year ago and continued job additions to the economy,” Yun said. “Perhaps some consumers are hesitating about moving forward with a major expenditure like purchasing a home before the upcoming election.”
While sales fell, prices have continued to increase. The median price of an existing home for sale increased 3% in September compared with a year earlier to $404,500. It was the 15th consecutive month of price increases.
Mortgage rates are also increasing. As of October 17, the average 30-year fixed-rate mortgage was 6.44% — up from 6.32% a week earlier.
The number of unsold existing homes increased 1.5% in September compared with a month earlier and 23% compared with a year ago. Homes are now sitting on the market an average of 28 days — up from 26 days in August and 21 days in September 2023.
“More inventory is certainly good news for home buyers as it gives consumers more properties to view before making a decision,” Yun said.
Susan Carpenter
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