MW Existing-home sales jump higher in September, helped by first-time buyers
Sales of previously-owned homes rebounded solidly in September, a signal that the housing recovery remains on track after a summer lull.
Existing-home sales ran at a seasonally adjusted annual rate of 5.47 million, the National Association of Realtors said Thursday. That was a 3.2% increase from a slightly revised 5.30 million pace in August and a 0.6% increase compared to September 2015.
The median sales price of $234,200 was 5.6% higher than a year ago, marking the 55th straight month of yearly price gains.
Sales stumbled in July and August after touching a 9-year high in June. Dwindling inventory and surging prices have been constraining the market, and together with a pullback in mortgage applications, the Realtors worried that the two months of declines marked a turning point in the recovery.
“Even with the affordability challenges, people want to buy,” NAR Chief Economist Lawrence Yun said Thursday.
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In September, sales rose in all four regions, ranging from a 5.8% gain in the Northeast to a 0.9% rise in the South. First-time buyers made up 34% of all transactions, the biggest share in four years.
Still, inventory tightened again. At the current sales pace, there were 4.5 months worth of unsold homes in September, well below the 6 months that historically marked a balanced market.
