Comeback: Existing-home sales rise in September

Existing-home sales made a comeback in September after declining in the previous month.

Total existing-home sales increased 7% to a seasonally adjusted annual rate of 6.29 million compared to the previous month, the National Association of Realtors (NAR) reported today. But sales decreased 2.3% compared to the prior compared to a rate of 6.44% in September 2020.

Existing-home sales include completed transactions of single-family homes, townhomes, condominiums, and co-ops.

Single-family home sales increased to a seasonally adjusted annual rate of 5.59 million in September, up 7.7% from 5.19 million in August and down 3.1% from one year ago.  The median existing single-family home price also rose to $359,700 in September, up 13.8% from September 2020.

Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 700,000 units in September, up 1.4% from 690,000 in August and up 4.5% from one year ago. The median existing condo price was $297,900 in September, an annual increase of 9.3%.

“Some improvement in supply during prior months helped nudge up sales in September,” said Lawrence Yun, NAR’s chief economist. “Housing demand remains strong as buyers likely want to secure a home before mortgage rates increase even further next year.”

Total housing inventory^[ at the end of September amounted to 1.27 million units, down 0.8% from August and down 13.0% from one year ago (1.46 million). Unsold inventory sits at just a 2.4-month supply at the present sales pace, down 7.7% from August and down from 2.7 months in September 2020.

The median existing-home price for all housing types in September was $352,800, up 13.3% from September 2020 ($311,500), as prices rose in each region. This marks 115 straight months of year-over-year increases.

Properties typically remained on the market for 17 days in September, unchanged from August and down from 21 days in September 2020. About 86% of homes sold in September 2021 were on the market for less than a month.

Here’s how existing-home sales break down by region:

• Existing-home sales in the Northeast grew 5.5% in September, posting an annual rate of 770,000, an 8.3% decrease from September 2020. The median price in the Northeast was $387,200, up 9.2% from one year ago.
• Sales in the Midwest rose 5.1% to an annual rate of 1,440,000 in September, a 2.7% drop from a year ago. The median price in the Midwest was $265,300, a 9.1% increase from September 2020.
• In the South, sales jumped 8.6% in September, recording an annual rate of 2,770,000, unchanged from one year ago. The median price in the South was $307,500, a 14.8% rise from one year ago.
• Existing-home sales in the West climbed 6.5%, registering an annual rate of 1,310,000 in September, down 3.0% from one year ago. The median price in the West was $506,300, up 8.3% from September 2020.