Existing-home sales remained relatively stable in September, increasing by 1.5% month-over-month, and 4.1% year-over-year, according to the National Association of Realtors (NAR). Sales increased on an annual basis in all regions except the West, where sales were flat compared to September 2024.
As in the new-home market, falling mortgage rates are a positive development for existing-home sales. However, despite cooling interest rates, unsold inventory is continuing to increase in the existing-home market.
“Inventory is matching a five-year high, though it remains below pre-COVID levels,” says NAR chief economist Lawrence Yun. “Many homeowners are financially comfortable, resulting in very few distressed properties and forced sales. Home prices continue to rise in most parts of the country, further contributing to overall household wealth.”
In September, existing-home sales increased to a seasonally adjusted annual rate of 4.06 million in September while unsold inventory increased to approximately 1.55 million units, equal to 4.6 months’ supply.
Median existing-home sales prices continue to grow, increasing 2.1% to $415,200 in September.
Rising prices and affordability challenges coupled with the prevalence of incentives and rate buydowns are factors that are benefitting the new-home market in the current housing landscape. Zonda’s most recent New Home Market Update indicated the new-home market was “stable” as builders continue to rely on incentives to motivate hesitant buyers off the sidelines. While rate declines typically reactivate stagnant demand, Zonda’s survey of builders indicates that concerns about broader macro conditions have kept the market slow even as rates trend downward.
“All of this is a good reminder that for consumers to make the largest purchase of their lives, they need a reason to move, adequate affordability, and confidence in where the market is headed,” Ali Wolf, chief economist for Zonda, said.
According to the NAR, single-family home sales increased 1.7% to a seasonally adjusted annual rate of 3.69 million, up 4.5% compared to September 2024. The median home price for single-family homes increased 2.3% annually to $420,700.
The median time on the market for properties was 33 days in September, up from 31 days last month and 28 days in September 2024. Three in ten existing-home purchases were made by first-time buyers, up from 26% a year ago The share of cash sales remained at 30% while the share of individual investor or second-home buyers declined to 15% from 16% a year ago.
On a regional basis, median prices increased in all four Census regions on a year over year basis. Median are the lowest in the Midwest ($320,800) and South ($364,500) and highest in the Northeast ($500,300) and the West ($619,100).The annual rate of sales was lowest in the Northeast (490,000) and highest in the South (1.86 million).
