Existing Home Sales Briefing Doc - October 2024
Source: National Association of REALTORS® (NAR) press release "Existing-Home Sales Slid 1.0% in September" (October 23, 2024)

Key Highlights:

Existing-home sales decreased 1.0% in September to a seasonally adjusted annual rate of 3.84 million, marking a 3.5% year-over-year decline.
Median existing-home price increased 3.0% year-over-year to $404,500, extending the streak of price increases to 15 consecutive months.
Inventory of unsold existing homes grew 1.5% from the previous month, reaching 1.39 million units, equivalent to a 4.3-month supply.
Main Themes:

1. Stagnant Sales Despite Favorable Conditions: Despite factors typically associated with increased home sales, such as rising inventory, lower mortgage rates, and consistent job growth, sales remained largely unchanged over the past year. NAR Chief Economist Lawrence Yun suggests a possible "hesitation" from consumers due to the upcoming election.

“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.

2. Increased Inventory Benefits Buyers: The growth in housing inventory offers buyers a wider selection of properties, potentially empowering them in the decision-making process. This increase, however, is not driven by distressed properties, which remain minimal due to low mortgage delinquency rates.

"More inventory is certainly good news for home buyers as it gives consumers more properties to view before making a decision,” Yun said.

3. Moderating Price Increases & Improved Affordability: While prices continue to rise, the pace of appreciation is slowing down, potentially easing affordability concerns. Wage growth surpassing home price appreciation further contributes to this positive trend.

"Moderating home price increases are welcome news for home buyers,” Yun added. “With wage growth now outpacing home price appreciation, housing affordability will improve.”

Important Facts:

Median days on the market for properties increased to 28 days in September.
First-time homebuyers accounted for a historically low 26% of sales.
All-cash sales represented 30% of transactions, with individual investors or second-home buyers making up 16% of purchases.
The average 30-year fixed-rate mortgage stood at 6.44% as of October 17, 2024.
Regional Performance:

The West was the only region experiencing sales growth, both month-over-month and year-over-year.
All four regions reported year-over-year median price increases.
Looking Ahead:

NAR's Pending Home Sales Index for September is scheduled for release on October 30, 2024.
Existing-Home Sales data for October will be released on November 21, 2024.
Overall: The September report reveals a complex housing market picture, with stagnant sales despite favorable conditions, increasing inventory, and moderating price increases. The upcoming election and its potential impact on consumer confidence remain key factors to observe.

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