Published October 23, 2024 05:40 pm est
by Richard F. Cason, 
Editor in Chief,
NewsMovesmarketsForex
Key Issues-
- U.S. existing-home sales decline of 1.0% seasonally adjusted annual rate to 3.84 million.
- 3.5% decrease compared to the same month last year, indicating a cooling trend in the housing market
- 15th consecutive month of year-over-year price increases, reflecting persistent demand
- Lift off in home prices can be attributed to several factors, including limited inventory and sustained interest from buyers
- 30-year fixed-rate mortgage averaging 6.44% as of mid-October—down from 7.63% a year prior.
- U.S. existing-home sales have plateaued around the four-million-unit mark over the past year, the combination of rising prices, increased inventory
U.S. Home Prices Rise as Sales Dip Sep 2024
U.S. existing-home sales in the United States experienced a modest decline of 1.0%, bringing the seasonally adjusted annual rate to 3.84 million.
This figure represents a 3.5% decrease compared to the same month last year, indicating a cooling trend in the housing market. However, despite the dip in sales, the median price of existing homes climbed by 3.0%, reaching $404,500.
This marks the 15th consecutive month of year-over-year price increases, reflecting persistent demand amid economic uncertainties.
Rise In Home Prices Inventories
The rise in home prices can be attributed to several factors, including limited inventory and sustained interest from buyers. The total inventory of unsold homes increased by 1.5% from August, totaling 1.39 million units by the end of September.
This translates to a supply of 4.3 months at the current sales pace, slightly up from 4.2 months in August and 3.4 months a year earlier.
More available homes can provide buyers with better options, although the inventory of distressed properties remains minimal, accounting for only 2% of all transactions.
Regionally, the market showed mixed results. The West saw a sales increase of 4.1%, contrasting with declines in the Northeast, Midwest, and South, where sales fell by 4.2%, 2.2%, and 1.7%, respectively. Notably, first-time homebuyers made up 26% of sales in September, matching an all-time low, while all-cash transactions rose to 30%.
This trend suggests a growing reliance on cash buyers, often individual investors or second-home buyers, who accounted for 16% of purchases.
U.S. Mortgage Rates
The economic backdrop features lower mortgage rates, with the 30-year fixed-rate mortgage averaging 6.44% as of mid-October—down from 7.63% a year prior.
This decline, combined with ongoing job growth, could stimulate buyer interest. However, many consumers appear hesitant, possibly waiting for the upcoming elections before making significant purchases.
Home Sales
In summary, while existing-home sales have plateaued around the four-million-unit mark over the past year, the combination of rising prices, increased inventory, and lower mortgage rates suggests that the housing market may be poised for a rebound. Continued monitoring of these economic indicators will be essential for understanding future trends in home sales.
For more Developing intriguing US Economic Home Sales Stories be sure to visit our U.S. Home Sales Category Breaking News Here:
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