David Bahnsen, Managing Partner of Bahnsen Group, discusses market volatility and analyzes the real estate market on The Big Money Show.
Existing home sales unexpectedly fell last month, slowing to their slowest pace since 2010, when the U.S. was still recovering from the recession. housing market crash.
The National Association of Realtors (NAR) reported Wednesday that existing home sales in September fell 1% from the previous month to a seasonally adjusted annualized rate of 3.84 million units, a 3.5% decrease from a year ago. .
A sign posted in front of a home for sale in San Rafael, California on August 7, 2024. Existing home sales in September fell to the lowest level in 14 years. (Justin Sullivan/Getty Images/Getty Images)
At the same time, the median sales price for existing homes rose 3% from last September to $404,500, marking the 15th consecutive month of year-over-year increases, NAR said.
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The inventory of unsold existing homes, which includes single-family homes, townhouses and condominiums, rose 1.5% from the previous month to 1.39 million units in September.
A “For Sale” sign is posted in front of a home in Patchogue, New York, on June 1, 2024. (Steve Forst/Newsday RM via Getty Images/Getty Images)
“Home sales have essentially been stuck at around 4 million units for the past 12 months, but the factors that typically drive home sales growth are evolving,” said NAR Chief Economist Lawrence Yun. Ta. “Consumers have more inventory options, mortgage rates are lower than they were a year ago, and jobs are continuing to be added to the economy.”
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Yun added, “Some consumers may be hesitant to make major expenditures such as purchasing a home before the next election.''
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Holden Lewis, NerdWallet Home and Mortgage Expert, The decline in existing home sales is due to a combination of rising mortgage rates and home prices that are putting the prospect of buying a home out of reach for more Americans amid an affordability crisis. Researchers believe that.
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“Mortgage rates have been steadily rising over the past month as the job market remains strong, while the median home price has remained above $400,000 for six consecutive months,” Lewis said. . “Rising mortgage rates and soaring home prices are hitting prospective home buyers, who are struggling to find housing they can afford.”
