What's Happening?
The National Association of REALTORS® (NAR) has reported a 1.5% increase in existing-home sales for September, marking a significant rise in the housing market. This increase is attributed to falling mortgage
rates, which have improved housing affordability. The report highlights that sales rose in the Northeast, South, and West, while the Midwest experienced a decline. The median home price increased across all regions, with the Northeast recording the highest median price at $500,300. The total housing inventory rose by 1.3% from August, reaching 1.55 million units, which is a 14% increase from the previous year. The average 30-year fixed-rate mortgage decreased to 6.35% in September, contributing to the rise in home sales.
Why It's Important?
The increase in existing-home sales is a positive indicator for the U.S. housing market, suggesting a recovery from previous downturns. The rise in sales, driven by lower mortgage rates, indicates improved affordability and consumer confidence in the housing market. This trend benefits real estate agents, homebuyers, and sellers, as it suggests a more robust market environment. The increase in home prices also contributes to household wealth, which can have a positive impact on consumer spending and the broader economy. However, the regional disparities in sales growth highlight ongoing challenges in certain areas, such as the Midwest, which may require targeted policy interventions.
What's Next?
The NAR's Pending Home Sales Index for September is scheduled for release on October 29, which will provide further insights into future sales trends. Additionally, the Existing-Home Sales report for October will be released on November 20. These upcoming reports will be closely watched by industry stakeholders to assess the sustainability of the current sales growth and to gauge the impact of any further changes in mortgage rates.
