Sales of existing homes in the US were down 2.2% in September as buyers were challenged by inventory and affordability.
The National Association of Realtors reported a seasonally adjusted annual rate of 5.38 million sales in September, although that is 3.9% above a year earlier.
All four major regions posted a decline, led by the Midwest.
“We must continue to beat the drum for more inventory,” said Yun, who has called for additional home construction for over a year. “Home prices are rising too rapidly because of the housing shortage, and this lack of inventory is preventing home sales growth potential.”
Inventory is 2.7% below its year-ago levels with 1.83 million homes available to buy.
The median existing-home price for all housing types in September was $272,100, up 5.9% from September 2018 ($256,900), as prices rose in all regions. September’s price increase marks 91 straight months of year-over-year gains.
Mortgage rates are below 4% which is attracting new buyers but the inventory and affordability challenges are dampening the market potential.
“For families on the sidelines thinking about buying a home, current rates are making the climate extremely favorable in markets across the country,” said NAR President John Smaby. “These traditionally low rates make it that much easier to qualify for a mortgage, and they also open up various housing selections to buyers everywhere.”
