Sales of existing homes in the US slowed in September to the weakest annual pace in almost 14 years, with a 1% decline from August to a seasonally adjusted rate of 3.84 million, according to the National Association of Realtors.
Despite easing mortgage rates and increasing property supply, sales dropped 3.5% from September of the previous year, with regions like the Northeast, South, and Midwest experiencing declines, while the West saw an increase.
The big picture: While home prices continued to rise for the 15th consecutive month, increasing by 3% annually to a median price of $404,500, the rate of price growth has been slowing down compared to previous years.
- The housing market has been in a sales slump since 2022 due to rising mortgage rates, with the average rate on a 30-year mortgage reaching 6.44% last week after briefly falling to 6.08% – the lowest level in two years.
- Inventory of unsold homes reached 1.39 million at the end of September, representing a 4.3-month supply at the current sales pace, up 23% from the previous year and contributing to longer selling times and fewer multiple offers on homes.
- First-time homebuyers faced challenges entering the market, with only 26% of all homes sold last month being purchased by first-time buyers, matching an all-time low, while cash purchases accounted for 30% of sales, indicating some buyers were able to avoid mortgage rate concerns.
