Housing prices in the US have risen. The price of a home sold in September was $415,200, up 2.1% from last year, writes UNN with reference to CNBC.
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Existing home sales in the US, according to the National Association of Realtors, increased by 1.5% in September compared to August, reaching a seasonally adjusted annual rate of 4.06 million units. This is slightly less than analysts predicted, but it is the highest figure in seven months.
Sales were up 4.1% compared to September last year.
Regionally, on an annual basis, the highest sales were in the South and Northeast of the US. Since August, sales were highest in the West and even slightly decreased in the Midwest of the US - the only region in the country that saw a monthly decline.
This calculation is based on closing data, so people likely entered into contracts in July and August, when mortgage rates were falling but not as low as they are now. According to Mortgage News Daily, the average rate for a 30-year fixed-rate mortgage in the US was 6.67% in early July and is now 6.17%.
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"As expected, falling mortgage rates are driving home sales," said Lawrence Yun, chief economist at the National Association of Realtors (NAR). "Increased housing affordability is also contributing to sales growth."
Inventory continued to rise, increasing by 14% compared to last year and reaching 1.55 million units by the end of September. This figure is still low. At current sales rates, housing supply is for 4.6 months. A six-month supply is considered balanced between buyer and seller.
"Inventory is at a five-year high, though still below pre-pandemic levels," Yun added. "Many homeowners are financially secure, leading to very few distressed properties and forced sales. Home prices continue to rise in most parts of the country, further contributing to overall household wealth."
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As before, limited supply continues to put pressure on prices. The median price of a home sold in September was $415,200, up 2.1% from a year ago, marking the 27th consecutive month of annual growth. Prices are 53% higher than before the pandemic.
Sales continue to show the strongest growth in the upper price segment of the market, likely due to increased supply in this category. Sales of homes priced over $1 million increased by 20% year-over-year, while sales of homes priced under $100,000 increased by just under 3%.
First-time homebuyers are seeing some benefit, likely due to lower mortgage rates. They accounted for 30% of sales in September, compared to 26% a year ago.
About 30% of sales were cash transactions. Homes are staying on the market longer - an average of 33 days compared to 28 days a year ago.