New Home Sales Report
September’s Home Sales Numbers
The median price of an existing home sold in September was $404,500, an increase of 3% year over year. This marks the 15th consecutive month of annual price gains.
Sales Decline in September
Sales of previously owned homes fell 1% in September compared with August, to a seasonally adjusted, annualized rate of 3.84 million units, the slowest pace since October 2010. This marks the third month of decline this year.
Sales by Region
Sales fell in three out of four U.S. regions, with just the West region seeing a gain. The overall decline is a result of higher mortgage rates and low inventory, which has led to a decrease in purchasing power for homebuyers.
Inventory and Supply
Inventory rose 1.5% month to month to 1.39 million homes for sale at the end of September. This represents a 4.3-month supply at the current sales pace, a slight improvement from the previous month’s 4.4-month supply. Inventory was 23% higher from September 2023.
Buyer’s Market
MORE INVENTORY IS CERTAINLY GOOD NEWS FOR HOME BUYERS AS IT GIVES CONSUMERS MORE PROPERTIES TO VIEW BEFORE MAKING A DECISION,” said Lawrence Yun, chief economist for the National Association of Realtors. “HOWEVER, THE INVENTORY OF DISTRESSED PROPERTIES IS MINIMAL BECAUSE THE MORTGAGE DELINQUENCY RATE REMAINS VERY LOW. DISTRESSED PROPERTY SALES ACCOUNTED FOR ONLY 2% OF ALL TRANSACTIONS IN SEPTEMBER.”
Market Trends
The pressure of still low inventory continues to push prices higher. The median price of an existing home sold in September was $404,500, an increase of 3% year-over-year. Cash continues to be king in this market, making up 30% of September sales. Pre-COVID, cash buyers made up about 20% of sales.
Homes are sitting longer, an average of 28 days compared with just 21 days a year ago. First-time buyers pulled back again, making up just 26% of September sales. This matches the all-time low from August.
Conclusion
The September home sales report shows a decline in sales and a slight increase in inventory, which is a positive sign for homebuyers. However, the ongoing low inventory and increasing prices continue to make it challenging for many to enter the market. As the market continues to evolve, it’s essential for buyers and sellers to stay informed and adapt to the changing landscape.
FAQs
Q: What is the current state of the housing market?
A: The market is experiencing a decline in sales and an increase in inventory, which is a slight improvement, but still remains a challenging environment for homebuyers.
Q: What is the median price of an existing home sold in September?
A: The median price of an existing home sold in September was $404,500, an increase of 3% year-over-year.
Q: What percentage of sales were cash transactions in September?
A: Cash transactions made up 30% of September sales.
Q: What is the average time a home sits on the market?
A: Homes are sitting longer, an average of 28 days compared with just 21 days a year ago.
