Newsroom

Existing-home sales increased 0.7 percent in September to a seasonally adjusted annual rate of 5.39 million. However, NAFCU Research Assistant Yun Cohen noted in a NAFCU Macro Data Flash report Friday that sales were down year over year, and the share of first-time buyers fell to a two-year low.

"Despite robust demand, the lack of affordable inventory continues to constrain sales," Cohen said.

Data from the National Association of Realtors (NAR) show that sales rose in two of the four regions during September. The West rose 3.3 percent, followed by the Midwest (+1.6 percent). Sales in the Northeast were unchanged from August. Sales in the South region decreased 0.9 percent.

"Sales in the South were impacted by Hurricane Irma," Cohen said. She pointed to data from Redfin that showed home sales in Miami declined 38.4 percent compared to last September. "However, the weather effect is expected to be temporary. According to the NAR, sales in Harvey-stricken Houston rebounded quickly and reported a 4 percent year-over-year gain in September," she added.

Based on current sales, there were 4.2 months of supply at the end of September, unchanged from August. Analysts consider six months of supply to be roughly balanced between supply and demand. Inventory increased 1.6 percent in September but was down 6.4 percent from a year ago. Inventory has declined year-over-year for 28 consecutive months.

The median existing-home price decreased from $253,100 in August to $245,100 (not seasonally adjusted) in September. This is 4.2 percent higher than the median price from a year ago. September marks the 67th consecutive month of year-over-year price increases.