Buyers are backing away from existing homes, according to the latest data from the National Association of Realtors. Existing-home sales decreased 3.4 percent in September over the previous month.
Existing-home sales dropped for four consecutive months prior to August 2018, when sales flattened. September's data marks the slowest pace of sales since November 2015, and was lower than MarketWatch's forecast of a 5.27 million rate. Annually, sales for these homes decreased 4.1 percent, and the median sales price grew 4.2 percent to $258,100. The NAR cites rising interest rates and buyers backing off as major drivers behind the September data.
It’s also likely that many would-be buyers are dropping out of a market that’s become too competitive, expensive and unsatisfying, especially as conditions in the rental market ease up. The national median rent declined compared to a year ago in September, Zillow said Thursday. That was the first yearly decline since 2012, and reflects a glut of supply, with more to come.