Existing-home sales fell in September for the eighth consecutive month but the good news is they fell less than expected, according to the National Association of Realtors.
- M-O-M: Total existing-home sales were down 1.5% from August to a seasonally adjusted annual rate of 4.71 million, this is slightly less than the 2.3% drop economists were projecting.
- Y-O-Y: Total sales are down 23.8% when compared to last year.
Median Price Falling. The median existing-home price was up 8.4% to $384,800 in September. This marks 127 consecutive months of year-over-year increases, the longest-running streak on record. However, this was the third month in a row that the median sales price fell after reaching a record high of $413,800 in June.
Regional Breakdown. Regionally, the South, of course, continues to dominate making up 44.2% of all existing -home sales even with a 1.9% drop from August to a seasonally adjusted annual rate of 2.08M. Meanwhile, the median price in the South was $351,700, an increase of 11.8% from last year and the only region still reporting double-digit price appreciation.
- Sales in the Midwest fell 1.7% to 1.14M, the West was unchanged at 880K, and the Northeast was down 1.6% to 610k.
- The West’s median home price still holds the top spot with a 7.1% y-o-y increase to $595,400 followed by the Northeast at $418,500 (+8.3%), the South, and then the Midwest at $281,500 (+6.9%).
Inventory. Total housing inventory fell 2.3% with 1.25 million units registered at the end of September, this is actually 0.8% lower than the same time last year. However, the slower sales pace puts unsold inventory at a 3.2-month supply, this is unchanged from August but is up from 2.4 months in September 2021.
- Properties typically remained on the market for 19 days in September, up from 16 days in August and 17 days one year ago.
Analysis. Lawrence Yun, chief economist at NAR, said inventory levels really contrast today’s downtown with 2008. “The current lack of supply underscores the vast contrast with the previous major market downturn from 2008 to 2010, when inventory levels were four times higher than they are today.”
BOTTOM LINE: As rates continue to climb sales of all kinds will continue to fall.
