Sales of previously owned homes in the US fell to their slowest pace in nearly 14 years in September, according to the National Association of Realtors (NAR).
Sales declined by 1% from August, bringing the seasonally adjusted annual rate to 3.84 million units, the lowest since October 2010. This marks a 3.5% drop compared to the same period last year.
The housing market has been grappling with a range of challenges, including high mortgage rates and limited inventory. Sales fell across most regions of the country, with declines in the South, Midwest, and Northeast. Only the West saw an increase, with sales rising by 4.1%, driven by stronger demand in states like California and Arizona.
The median price of an existing home sold in September was $404,500, a 3% year-over-year increase. This is the 15th consecutive month of annual price gains, underscoring how persistent supply shortages continue to put upward pressure on prices despite weaker sales activity. The supply of homes for sale increased 1.5% from August, with 1.39 million homes on the market, representing a 4.3-month supply at the current sales pace.
Mortgage rates, which averaged around 6.08% earlier in the summer, have edged higher recently, limiting affordability for potential buyers. First-time homebuyers made up just 26% of sales in September, matching an all-time low.
Economists like Lawrence Yun, NAR’s chief economist, noted that while sales have been stagnant, there are positive signs for the future, including a potential for lower mortgage rates and more inventory, which could help boost sales going forward. However, challenges remain, as many homeowners with low-rate mortgages are hesitant to sell, contributing to the limited inventory on the market.
