Existing home sales increased 5.5% in September to a seasonally adjusted 5.18 million unit rate, the National Association of Realtors announced Friday.
The sales gain to 5.18 million compared to the 4.920 million unit pace predicted by Thomson Reuters’ poll of economists and followed a revised 2.2% drop to a 4.91 million unit level in August.
On a year-over-year basis, sales overall were up 1.4% from a 5.11 million unit sales pace last September.
“The sales turnaround which began in California several months ago is broadening now to Colorado, Kansas, Minnesota, Missouri, and Rhode Island,” said NAR chief economist Lawrence Yun. “The South was hampered by much lower home sales in Houston in the aftermath of Hurricane Ike.”
NAR credited increased affordability with promoting the rise.
“The credit markets are not settled yet, although the mortgage market stabilized with the government takeover of Fannie Mae and Freddie Mac. Inventory remains high, and price declines are pressuring owners,” Yun said. “Additional housing stimulus would stabilize prices more quickly, which in turn would bring faster stability to Wall Street. Removing the repayment feature on the first-time buyer tax credit and permanently raising loan limits would bring more buyers into the market and further reduce inventory.”
“This is the first time since November 2005 that home sales have been above year-ago levels,” said NAR president Richard F. Gaylord. “Credit tightened at the end of September, but the improvement demonstrates that buyers who’ve been on the sidelines want to get into the market to make a long-term investment in their future.”
Sales rose in three of the four regions of the country in September, decreasing 1.2% in the Northeast while climbing 16.8% in the West, 4.4% in the Midwest, and 2.2% in the South.
Inventory levels rose 0.3% at the end of September, to 4.266 million existing homes for sale, representing a 9.9-month supply at the current sales pace, down from 10.6 months last month.
Meanwhile, the median existing home price was $191,600 in September, down 5.7% from in August, when the median price was $203,100, and slid 9.0% year-over-year from a $210,500 level.
The average existing home price was $234,700 in September, off 4.4% from the month before, when the average price was $245,400, and dipped 8.8% year-over-year from a $257,300 level.
The national average 30-year, fixed-rate mortgage was 6.04%, down from August’s 6.48%, NAR said. The rate was 6.38% in September 2007.
