Existing home sales were down 4.1% year-over-year in September 2018, with a seasonally-adjusted rate of 5.15M units, compared to 5.37M in September 2017. This pace is also a 3.4% drop from August (2018).
Median home price for EHS in September was $258,100, which is a 4.2% year-over-year gain. September’s price increase marks the 79th straight month of year-over-year gains.
NAR chief economist, Lawrence Yun attributes rising interest rates, housing affordability and inventory as continued threats to more robust sales.
“This is the lowest existing home sales level since November 2015. A decade’s high mortgage rates are preventing consumers from making quick decisions on home purchases. All the while, affordable home listings remain low, continuing to spur underperforming sales activity across the country.”
– Lawrence Yun, NAR Chief Economist
While housing inventory (1.88M existing homes) continues to inch upward year-over-year, the market’s supply is still 25-30% below levels of a healthier market. Current housing inventory sits at a 4.4 month supply (up over September 2017’s 4.2 months) which is well below a 6-month supply seen in solid real estate markets.