Home sales experienced a small decrease this past September according to a recent report issued by the National Association of Realtors (NAR). The two previous months had shown increases, but all 4 primary regions across the United States experienced a small dip going into fall market.
Total existing home sales include sales of single-families, townhomes, condos and coops. Collectively these decreased by 2.2% from August into September. However, despite this dip home sales are up by 3.9% over 2018 at this same time which is exceptional news.
Lawrence Yun, NAR’s chief economist, said that despite historically low mortgage rates, sales have not commensurately increased, in part due to a low level of new housing options. “We must continue to beat the drum for more inventory,” said Yun, who has called for additional home construction for over a year. “Home prices are rising too rapidly because of the housing shortage, and this lack of inventory is preventing home sales growth potential.”
The median existing home price for all types of properties was up this September over last year by 5.9%. Extending the trend of gains, this is the 91st month of year over year price increases.
Number of Days on Market
Homes were on the market for an average of 32 days in September which was up from 31 days in August. Nearly 50% of all properties that sold in September were on the market for less than one month.
Loan rates have continued to remain historically low. According to Freddie Mac, the average commitment rate for a 30 year fixed loan was 3.61% which was lower than the 3.62% seen in August. By comparison the average for all of 2018 was 4.54%.
“Mortgage rates under 4% are amazingly attractive for homebuyers,” said Yun. “The rise in foot traffic as evidenced by the open rates of SentriLock key boxes shows growing buyer interest.”