Existing-Home Sales Drop in September

Sales of existing homes dropped in September. According to the National Association of Realtors, existing-home sales fell by 1% month-over-month to an annual rate of 3.84 million homes. On a year-over-year basis, existing-home sales were down by 3.5%. However, this could change as inventory continues to improve. Total housing inventory at the end of September was 1.39 million units, a 1.5% increase from August and 23% higher than a year ago.

“Home sales have been essentially stuck at around a four-million-unit pace for the past 12 months, but factors usually associated with higher home sales are developing,” said NAR Chief Economist Lawrence Yun. “There are more inventory choices for consumers, lower mortgage rates than a year ago and continued job additions to the economy. Perhaps, some consumers are hesitating about moving forward with a major expenditure like purchasing a home before the upcoming election.”

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