Bahnsen Group managing partner David Bahnsen discusses market volatility and analyzes the real estate market on The Big Money Show.
Sales of pre-owned homes fell sharply last month, falling to a pace not seen since 2010 when the US was still recovering from the housing market crisis.
The National Association of Realtors (NAR) reported Wednesday that existing home sales fell 1% in September from the previous month to a seasonally adjusted annual average of 3.84 million, a 3.5% decline from one year ago.
The sign is placed in front of the home for sale on Aug. 7, 2024, in San Rafael, California. Existing home sales fell in September to a 14-year low. (Justin Sullivan/Getty Images/Getty Images)
Meanwhile, the median sales price of existing homes jumped 3% from last September to $404,500, marking the 15th consecutive month of year-over-year price increases, the NAR said.
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The number of existing unsold homes, which includes single-family homes, townhouses and condominiums, rose 1.5% in September from the previous month to 1.39 million.
A “for sale” sign hangs in front of a house in Patchogue, New York, on June 1, 2024. (Steve Pfost/Newsday RM via Getty Images/Getty Images)
“Home sales have slowed by nearly four million over the past 12 months, but the factors typically associated with high-end home purchases are improving,” said NAR chief economist Lawrence Yun. “There are more choices for consumers, lower mortgage rates than last year and continued job additions to the economy.”
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Yun added, “Perhaps, some buyers are hesitant to go ahead with big expenses like buying a house before the next election.”
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Holden Lewis, Home & Mortgage Expert at NerdWallet, They say the decline in home sales is due to a combination of rising mortgage rates and home prices that have pushed the prospect of home buying out of reach for more Americans amid the affordability crisis.
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“Mortgage costs are rising steadily throughout the month as the job market remains strong. Meanwhile, the median home price has exceeded $400,000 for six straight months,” said Lewis. “Rising home values and high home prices are compounding for homebuyers who are struggling to find homes they can afford.”
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