September 2023
National sales of existing homes recently fell to a 7-month low, as surging borrowing
costs, rising sales prices, and limited inventory continue to keep many would-be
buyers out of the market. Borrowers have become increasingly sensitive to
fluctuations in mortgage rates, which have remained above 7% since mid-August.
With fewer buyers able to afford the costs of homeownership, existing-home sales
declined 0.7% month-over-month and were down 15.3% year-over-year, according
to the National Association of REALTORS®(NAR).
New Listings were up 6.7 percent to 1,395. Pending Sales increased 0.9 percent to
1,093. Inventory grew 16.5 percent to 2,302 units.
Prices moved lower as Median Sales Price was down 3.9 percent to $260,000. Days
on Market increased 25.9 percent to 34 days. Months Supply of Inventory was up
37.5 percent to 2.2 months, indicating that supply increased relative to demand.
Prices have continued to increase this fall despite softening home sales nationwide,
as a lack of inventory has kept the market competitive for prospective buyers,
sparking bidding wars and causing homes to sell for above asking price in some
areas. Heading into September there were only 1.1 million units available for sale,
0.9% fewer than a month ago and 14.1% fewer than the same period last year,
according to NAR. As a result, the U.S. median existing-home sales price rose 3.9%
year-over-year to $407,100, marking the third consecutive month that the median
sales price topped $400,000.
Information courtesy of CMLS*
