U.S. existing-home sales decrease more than forecast in September

The National Association of Realtors (NAR) announced on Tuesday that the U.S. existing home sales fell 2.2 percent m-o-m to a seasonally adjusted rate of 5.38 million in September from a revised 5.50 million in August (originally 5.49 million).

Economists had forecast home resales decreasing to a 5.45 million-unit pace last month.

In y-o-y terms, existing-home sales rose 3.9 percent in September.

According to the report, single-family home sales stood at a seasonally adjusted annual rate of 4.78 million in September, down from 4.91 million in August, but up 3.9 percent from a year ago. The median existing single-family home price was $275,100 in September, up 6.1 percent from September 2018. Meanwhile, existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 600,000 units in September, 1.7 percent above the previous month and 3.4 percent higher than a year ago. The median existing condo price was $248,600 in September, up 4.5 percent from a year ago.

The NAR’s chief economist Lawrence Yun noted that despite historically low mortgage rates, sales have not commensurately increased, in part due to a low level of new housing options. “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.”