Sales of existing homes rose 7% to 6.29 million occasionally changed units in September from the previous month, as reported by the National Association of Realtors (NAR). The results exceeded reviewers’ assumptions for a 3.6% increase, according to Bloomberg estimates. Yoon noted that the surge in activity last year, due to the departure of COVID-19 and pent-up demand, was the best season for declining sales. Yun also attributed the surge in activity to mortgage rates – which, after hitting 3% in mid-year, fell back to 2.8% in August – and positive occupancy reports which boosted confidence. on the market.
âHousing demand remains strong as buyers are likely to want a home before mortgage rates rise even further next year,â he said.
âThis fall appears to be the second best season for fall home sales in 15 years,â NAR chief economist Lawrence Yun said at a press conference that released the new data.
The increase in existing home sales was expected as pending home sales in August, which led to actual sales, were up 8.1%, according to the NAR.
The median price of existing homes for all housing types in September reached $ 352,800, up 13.3% from a year ago, but down slightly from the previous month and the third month in a row drop. Yun noted that the trend is typical for the season, but also pointed out that home price growth is moderating from its increases of more than 20%.
“Existing home sales in September far exceeded expectations and posted their fastest annualized pace since last fall, recouping the ground lost in August and illustrating that even slight tilts in market conditions are towards buyers. can pay real dividends by increasing selling activity, âsaid Kwame Donaldson, Zillow’s senior economist, in a statement after the results. âSales remain well below the peak of last October, when homebuyers rushed into the housing market after the brief COVID-19 recession in a surge in demand that had been repressed during pandemic lockdowns. “
Despite the downward trend, first-time home buyers accounted for 28% of all sales last month, the lowest point since July 2015. or equity âto offset such a purchaseâ.
Goldman Sachs economists recently forecast a 16% increase in home prices by the end of 2022, citing shortages of inventory as the main driver of the price hike.
The total building stock at the end of September stood at 1.27 million units, down 0.8% from August and 13.0% from a year ago (1.46 million) . The unsold inventory stands at a 2.4 month supply at current selling pace, down 7.7% from August and down from 2.7 months in September 2020. Robust demand, âsaid Credit Suisse in a research note before the results. âSupply issues may continue to dampen real estate activity in the near term, but there are early signs that these supply issues may soon normalize. For example, the number of homes “authorized but not started” appears to have peaked and could decline in the coming months, which will stimulate housing starts in the medium term. “
Summary of the news:
- US sales of existing homes rebound in September, up 7%
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