Existing home sales were down in September despite an uptick in the total housing inventory, according to new data from to the National Association of Realtors (NAR).
Total existing home sales dropped by 1.0% from August to a seasonally adjusted annual rate of 3.84 million in September. On a year-over-year measurement, sales were down by 3.5% from 3.98 million in September 2023.
Sales were slow despite the quickly expanding volume of available properties. Total housing inventory was 1.39 million units by the end of September, up 1.5% from August and 23.0% from one year ago (1.13 million). Unsold inventory sits at a 4.3-month supply at the current sales pace, up from 4.2 months in August and 3.4 months in September 2023.
The median existing-home price for all housing types in September was $404,500, up 3.0% from one year ago ($392,700). All four regions reported price increases.
“Home sales have been essentially stuck at around a four-million-unit pace for the past 12 months, but factors usually associated with higher home sales are developing,” said NAR Chief Economist Lawrence Yun. “There are more inventory choices for consumers, lower mortgage rates than a year ago and continued job additions to the economy. Perhaps, some consumers are hesitating about moving forward with a major expenditure like purchasing a home before the upcoming election. More inventory is certainly good news for homebuyers as it gives consumers more properties to view before making a decision.”
First-time buyers were responsible for 26% of sales in September, matching the all-time low from August 2024 and November 2021; one year ago, that share was 27%. All-cash sales accounted for 30% of transactions in September, up from 26% in August and 29% in September 2023. And distressed sales represented 2% of sales in September, virtually unchanged from last month and the previous year.
“The inventory of distressed properties is minimal because the mortgage delinquency rate remains very low,” added Yun.
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