Peak season for real estate continues moving to later in the year as sales of existing homes rose a higher-than-expected 9.4% to 6.54 million units in September.
But sales could have been more robust if there were more listings. The inventory of houses for sale fell 19.2% to 1.47 million homes, representing a 2.7-month supply, the lowest level for housing stock since the National Association of Realtors began tracking this metric in 1982. Meanwhile rising demand and low inventory pushed the median house price up 14.8% to a record $311,800.
“Americans are splurging on spending for housing,” said Lawrence Yun, chief economist at the NAR, noting that they are also spending more on home improvements at retailers like Home Depot and Lowe’s. “Home prices are simply rising too fast.”
Yun said this could limit the opportunities for first-time buyers in the future. The first-time buyer share of the market fell to 31% in September from 33% in August.
Advertisement
Related Stories
Affordability
Survey Shows Buyers Have Homebuying Regrets
More than 80% of respondents have regrets about their home purchase and 50% of upcoming buyers would consider forgoing using an agent
Affordability
Is Fractional Homeownership Any Kind of Solution for Housing Attainability?
The imbalance between housing supply and demand is spurring some innovative options within the real estate industry
Sales
What the NAR Commissions Settlement Means for Home Builders
The legal settlement will improve transparency during the home sales process, mitigate predatory practices, and help preserve profitability for home builders
