U.S. existing home sales fall to 14-year low in September

On October 23, the National Association of Realtors released data indicating a significant decline in existing home sales in the United States. For September, the annualized rate of home sales dropped to 3.84 million units, marking the lowest level since October 2010.

According to the report, the annualized sales figure represents a 1% decrease from the previous month and a 3.5% decrease compared to the same time last year, falling short of market expectations. In terms of pricing, the median home price in September stood at $404,500, reflecting a 3% increase year-over-year, and a substantial 49% rise over the past five years.

Regarding inventory, there were 1.39 million homes available for sale by the end of September, showing a 1.5% increase from the previous month and a 23% increase compared to the same period last year. At the current sales pace, it would take approximately 4.3 months to sell all the homes on the market. Typically, a balanced market would require about 5 to 6 months to clear available listings.

Despite a decrease in mortgage rates following the Federal Reserve’s rate cut in September, recent trends show that this has not translated into increased sales. Analysts suggest that some potential buyers may be waiting for further reductions in mortgage rates, while others might be postponing their decisions until after the upcoming elections.

Economists generally expect mortgage rates to remain stable at current levels. They forecast that the average rate for a 30-year fixed mortgage will hold at 6.2% through the fourth quarter of this year, potentially dropping to 5.7% by the fourth quarter of next year.

Data from Freddie Mac indicates that the average rate for a 30-year fixed mortgage fell to 6.08% on September 26—the lowest in nearly two years—before rebounding to 6.44% on October 17.