Sales of existing home rose 0.7% to a seasonally adjusted annual rate of 5.39 million in September from 5.35 million in August, the National Association of Realtors reported Friday. Still, last month’s sales pace was 1.5% below a year ago and the second slowest over the past year (behind August).
“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,” said Lawrence Yun, NAR chief economist. “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.
Single-family home sales climbed 1.1% to a seasonally adjusted annual rate of 4.79 million in September from 4.74 million in August, but are still 1.2% under the 4.85 million pace a year ago. The median existing single-family home price was $246,800 in September, up 4.2% from September 2016.
Existing condominium and co-op sales decreased 1.6% to a seasonally adjusted annual rate of 600,000 units in September, and are now 3.2% below a year ago. The median existing condo price was $231,300 in September, which is 4.1% above a year ago.
September existing-home sales in the Northeast were at an annual rate of 720,000 (unchanged from August), and are now 1.4% below a year ago. The median price in the Northeast was $274,100, which is 4.8% above September 2016. In the Midwest, existing-home sales rose 1.6% to an annual rate of 1.30 million in September, but are 1.5% below a year ago. The median price in the Midwest was $195,800, up 5.4% from a year ago. Existing-home sales in the South slipped 0.9% to an annual rate of 2.13 million in September, and are now 2.3% lower than a year ago. The median price in the South was $215,100, up 4.6% from a year ago. Existing-home sales in the West increased 3.3% to an annual rate of 1.24 million in September (unchanged from a year ago). The median price in the West was $362,700, up 5.0% from September 2016.
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% 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%), 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. “Nearly two-thirds of renters currently believe now is a good time to buy a home, but weakening affordability and few choices in their price range have made it really difficult for more aspiring first-time buyers to reach the market,” said Yun.
Properties typically stayed on the market for 34 days in September, which is up from 30 days in August but down from 39 days a year ago. Forty-eight% of homes sold in September were on the market for less than a month.
Inventory data from realtor.com® reveals that the metropolitan statistical areas where listings stayed on the market the shortest amount of time in September were San Francisco-Oakland-Hayward, Calif., 30 days; San Jose-Sunnyvale-Santa Clara, Calif., 32 days; Salt Lake City, Utah, 35 days; and Seattle-Tacoma-Bellevue, Wash., and Vallejo-Fairfield, Calif., both at 36 days.
All-cash sales were 20% of transactions in September, unchanged from August and down from 21% a year ago. Individual investors, who account for many cash sales, purchased 15% of homes in September (unchanged from last month and a year ago). Distressed sales – foreclosures and short sales – were 4% of sales in September, unchanged from last month and a year ago. Three% of September sales were foreclosures and 1% were short sales.
Single-family home sales climbed 1.1% to a seasonally adjusted annual rate of 4.79 million in September from 4.74 million in August, but are still 1.2% under the 4.85 million pace a year ago. The median existing single-family home price was $246,800 in September, up 4.2% from September 2016.
Existing condominium and co-op sales decreased 1.6% to a seasonally adjusted annual rate of 600,000 units in September, and are now 3.2% below a year ago. The median existing condo price was $231,300 in September, which is 4.1% above a year ago.
September existing-home sales in the Northeast were at an annual rate of 720,000 (unchanged from August), and are now 1.4% below a year ago. The median price in the Northeast was $274,100, which is 4.8% above September 2016. In the Midwest, existing-home sales rose 1.6% to an annual rate of 1.30 million in September, but are 1.5% below a year ago. The median price in the Midwest was $195,800, up 5.4% from a year ago. Existing-home sales in the South slipped 0.9% to an annual rate of 2.13 million in September, and are now 2.3% lower than a year ago. The median price in the South was $215,100, up 4.6% from a year ago. Existing-home sales in the West increased 3.3% to an annual rate of 1.24 million in September (unchanged from a year ago). The median price in the West was $362,700, up 5.0% from September 2016.
