In September, sales of previously owned homes declined by 1% compared to August, reaching the slowest pace since October 2010. Sales were also 3.5% lower than in September 2023, with only the West region seeing an increase. Factors such as mortgage rates dropping to below 6.5% have not significantly impacted home sales, which have been stuck at around a four-million-unit pace for the past year. Inventory increased by 1.5% in September, providing more options for potential buyers but also leading to higher prices. The median price of an existing home sold in September was $404,500, marking the 15th consecutive month of annual price gains. Cash transactions accounted for 30% of September sales, up from pre-Covid levels of around 20%. Despite the increase in inventory, homes are selling at a slower pace, with an average of 28 days on the market compared to 21 days a year ago. First-time buyers have also decreased, representing only 26% of September sales, matching the previous month’s all-time low. Overall, the housing market continues to be impacted by low inventory levels, high prices, and decreased demand from first-time buyers.
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