After seeing waning numbers in August, existing-home sales bumped up last month by 7% to a seasonally adjusted annual rate of 6.29 million, with each of the four major U.S. regions seeing month-over-month increases, according to the latest data from the National Association of REALTORS® (NAR). Year, over year, however, sales decreased 2.3%.
Single-family home sales decreased to a seasonally adjusted annual rate of 5.59 million in September—up 7.7% from 5.19 million in August and down 3.1% YoY. The median existing single-family home price was $359,700 in September, up 13.8% from September 2020.
Existing condo and co-op sales were at a seasonally adjusted annual rate of 700,000 units in September, up 1.4% from 690,000 in August and up 4.5% YoY. The median existing condo price was $297,900 in September, an increase of 9.3% from last year.
By Region:
Midwest
Existing-Home Sales: 1.44 million (-2.7% YoY)
Median Price: $265,300 (+9.1% YoY)
Northeast
Existing-Home Sales: 770,000 (-8.3% YoY)
Median Price: $387,000 (+9.2% YoY
South
Existing-Home Sales: 2.77 million (flat YoY)
Median Price: $307,500 (+14.8% YoY)
West
Existing-Home Sales: 1.31 million (-3.0% YoY)
Median Price: $506,300 (+8.3% YoY)
What the industry is saying:
“Some improvement in supply during prior months helped nudge up sales in September. Housing demand remains strong as buyers likely want to secure a home before mortgage rates increase even further next year. As mortgage forbearance programs end, and as homebuilders ramp up production—despite the supply-chain material issues—we are likely to see more homes on the market as soon as 2022. First-time buyers are hit particularly hard by the historically high home prices as they largely do not have the savings required to buy a home or equity to offset such a purchase. — Lawrence Yun, Chief Economist, NAR
“As housing laws change and new legislation is proposed, NAR remains steadfast in its mission to promote and defend homeownership opportunities for all. “We continually work on behalf of consumers and our members to see inventory increased and ensure homebuyer and homeowner rights are protected.” — Charlie Oppler, President, NAR
“The gain in existing-home sales in September reflects contracts signed earlier in the summer. MBA’s purchase application data showed an 8% gain in September, which is evidence of growing demand for buying a home and supports further sales increases in the months ahead. With inventory at only 2.4 months’ supply, and median home prices increasing nationally at 13%, it was not surprising to see the first-time homebuyer share of the market drop again to 28%. Depressed inventory levels continue to constrain the market, but MBA still forecasts for existing sales to come in at an annualized pace of 6.07 million this year—a 7% increase from 2020.
“MBA expects new home construction to help support growing inventory levels as we enter 2022, which will lead to a deceleration in home-price growth. Demand is strong and wage growth is healthy, and first-timers will have better chances to reach the market as inventory increases.” — Mike Fratantoni, SVP and Chief Economist, Mortgage Bankers Association (MBA)
“October 2020 marked the peak of home sales activity in the last 12 months, as the shock of COVID quarantines gave way to a frantic search for housing solutions in the new normal of pandemic social distancing and remote work. The pace of sales has since been moderating, and almost a year later, we’re looking at more typical seasonal cooling this autumn. Many homeowners continue to be stymied by tight inventory as they look for their next home, keeping the number of sellers listing existing homes tight. Meanwhile, with builders keeping a lid on the construction of new homes, the new supply pipeline is only adding to the inventory shortage and pushing prices higher. In addition, with the Fed expected to cut back its asset purchases, rising mortgage rates are impacting the affordability of monthly home payments.” — George Ratiu, Manager of Economic Research, realtor.com®
For more information, please visit www.nar.realtor.
