U.S. existing-home sales rose 1.5% in September to a seasonally adjusted annual rate of 3.99 million but were 2.2% lower than a year earlier, with sales falling year over year in all four regions.
Single-family sales rose 2.0% from August to an annual rate of 3.64 million, down 1.9% from a year ago. Condo and co-op sales fell 2.8% to 350,000, down 5.4% year over year. By region, the South, the largest market, rose 2.8% to an annual rate of 1.86 million and was nearly flat on the year, down 0.5%. The West also rose 2.8%, to 730,000, but posted the steepest annual decline at 5.2%. The Midwest held at 930,000, down 2.1%, and the Northeast fell 2.1% to 470,000, down 4.1%.
In better news for the professional moving market, sales of homes priced at $1 million or more were the only price band to post an annual gain, rising 4%, while the weakness was concentrated at the lower end. In the Midwest, $1 million-plus sales rose 16.1% while sales under $250,000 fell by double digits.
Rising borrowing costs are holding back demand. The average 30-year fixed mortgage rate rose to 6.86% in September, from 6.67% in August and 6.35% a year earlier. “Further increases in mortgage rates in recent weeks mean fewer buyers can qualify to purchase a home,” said NAR Chief Economist Lawrence Yun, who warned that fourth-quarter closings could be measurably down. Inventory rose to 1.60 million homes, the highest level since November 2019 and a 4.8-month supply, and median time on market increased to 33 days.
IAM Member Impact: Lower sales indicate fewer moves going into the fourth quarter, with the West and Northeast weakest and the South holding up best. Growth in $1 million-plus sales points to steadier demand for larger moves, even as overall volumes soften. Because homes are taking longer to sell, members may see more uncertainty between listing and move dates.
Source: National Association of REALTORS