Existing homes sales in the United States edged up by 0.7% in September after three monthly declines in a row but agents are warning that ongoing supply shortages continue to affect the property market.
In top of this the recent spate of hurricanes have muted overall activity in some locations and overall sales have decreased on an annual basis, according to the latest index report from the National Association of Realtors.
It means that sales activity last month was 1.5% below the same month in 2016, making it the second slowest month behind August over the past year.
‘Home sales in recent months remain at their lowest level of the year and are unable to break through, despite considerable buyer interest in most parts of the country,’ said Lawrence Yun, NAR chief economist.
He explained that NAR members report that the main impediments stifling sales growth are the same as they have been all year which are not enough listings, especially at the lower end of the market, and fast rising prices that are straining the budgets of prospective buyers.
‘Sales activity likely would have been somewhat stronger if not for the fact that parts of Texas and South Florida hit by Hurricanes Harvey and Irma saw temporary, but notable declines,’ Yun added.
The index also shows that the median existing home price for all housing types in September was $245,100, up 4.25 from September 2016 and the market has now seen prices rise for 67 months in a row on a year on year basis.
Total housing inventory at the end of September rose 1.6% to 1.90 million existing homes available for sale, but still remains 6.4% lower than a year ago and has fallen year on year for 28 consecutive months. Unsold inventory is at a 4.2 month supply at the current sales pace, which is down from 4.5 months a year ago.
‘A continuation of last month’s alleviating price growth, which was the slowest since last December, would improve affordability conditions and be good news for the would-be buyers who have been held back by higher prices this year,’ Yun pointed out.
First time buyers accounted for 29% of sales in September, down from 31% in August and 34% a year ago and matches the lowest share since September 2015.
A breakdown of the figures show that sales of single family increased by 1.1% but are still 1.2% below a year ago with the median existing single family home price reaching $246,800, up 4.2% from September 2016. Existing condominium and co-op sales decreased 1.6% and are now 3.2% below a year ago with a median price of $231,300, some 4.1% above a year ago.
On a regional basis existing home sales in the Northeast were unchanged from August and are now 1.4% below a year ago with a median price of $274,100, which is 4.8% above September 2016.
In the Midwest, existing home sales rose 1.6% but are 1.5% below a year ago with a median price of $195,800, up 5.4% year on year. Existing home sales in the South fell 0.9% and are now 2.3% lower than a year ago with a median price of $215,100, up 4.6% year on year.
The data also shows that existing home sales in the West increased 3.3% to an annual rate of 1.24 million in September, unchanged from a year ago, with a median price of $362,700, up 5% from September 2016.
