Existing Home Sales Inched Up 0.7% in September

Washington, DC, October 20, 2017-Total existing-home rose 0.7% to a seasonally adjusted annual rate of 5.39 million in September from 5.35 million in August, according to the National Association of Realtors.

Last month's sales pace is 1.5% below a year ago and is the second slowest over the past year (behind August).

Lawrence Yun, NAR chief economist, says closings mustered a meager gain in September, but declined on an annual basis for the first time in over a year (July 2016; 2.2%). “Home sales in recent months remain at their lowest level of the year and are unable to break through, despite considerable buyer interest in most parts of the country,” he said. “Realtors this fall continue to say the primary impediments stifling sales growth are the same as they have been all year: not enough listings – especially at the lower end of the market – and fast-rising prices that are straining the budgets of prospective buyers.”

Added Yun, “Sales activity likely would have been somewhat stronger if not for the fact that parts of Texas and South Florida-hit by Hurricanes Harvey and Irma-saw temporary, but notable declines.”

The median existing-home price for all housing types in September was $245,100, up 4.2% from September 2016 ($235,200). September's price increase marks the 67th straight month of year-over-year gains.

Total housing inventory at the end of September rose 1.6% to 1.90 million existing homes available for sale, but still remains 6.4 percent lower than a year ago (2.03 million) and has fallen year-over-year for 28 consecutive months. Unsold inventory is at a 4.2-month supply at the current sales pace, which is down from 4.5 months a year ago.

“A continuation of last month's alleviating price growth, which was the slowest since last December (4.5 percent), would improve affordability conditions and be good news for the would-be buyers who have been held back by higher prices this year,” said Yun.

First-time buyers were 29% of sales in September, which is down from 31% in August, 34% a year ago and matches the lowest share since September 2015. NAR's 2016 Profile of Home Buyers and Sellers-released in late 2016-revealed that the annual share of first-time buyers was 35%.