Existing home sales in US drop 1 percent in September to 14-year low
Date
10/24/2024 5:42:52 AM
(MENAFN) US existing home sales experienced a decline of 1 percent in September compared to the previous month, reaching their lowest level since 2010, according to a report released by the National Association of Realtors (NAR) on Wednesday. Specifically, existing home sales, which track the change in the number of residential properties sold, dropped to a seasonally adjusted annual rate of 3.84 million in September. This figure fell short of estimates, which predicted sales would reach 3.88 million. Additionally, the August sales figure was revised upward to 3.88 million from an initial estimate of 3.86 million, reflecting a monthly decline of 2 percent.
Despite the decrease in sales volume, the median price of existing homes rose by 3 percent year-on-year to USD404,500 in September. This marked the end of four consecutive months of reaching all-time high prices but still represented the 15th consecutive month of year-on-year price increases. NAR Chief Economist Lawrence Yun noted that while there are more inventory choices available for buyers and mortgage rates are lower than they were a year ago, there are still challenges in the market.
Yun suggested that some consumers may be hesitant to make significant purchases, such as buying a home, especially with the upcoming election on the horizon. This uncertainty could be influencing their decision-making process. Overall, the annual comparison indicates that existing home sales are down 3.5 percent from the previous year, when sales were recorded at 3.98 million in September 2023.
The combination of rising prices, fluctuating sales volumes, and consumer hesitation highlights the complexities of the current housing market, as buyers navigate through varying economic conditions and potential changes in the political landscape.
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