WASHINGTON — Existing home sales jumped 10.0% to a seasonally adjusted annual rate of 4.53 million in September, the National Association of Realtors reported Monday, while warning against a national moratorium on foreclosure sales.
Sales in August totaled 4.21 million, revised up from the 4.13 million reported last month. There were 3.84 million existing home sales in July, the lowest on records dating back to 1999.
Economists expected 4.300 million existing home sales in September, according to the median estimate from Thomson Reuters.
The median home price decreased to $171,700 in September from $177,500 in August. The median home price has declined for three consecutive months.
The supply of homes for sale declined to 10.7 months from 12.0 months in August.
Lawrence Yun, the NAR’s chief economist, said he is “very concerned” about a halt in foreclosure sales. Homes in foreclosure account for about 20% of the housing market now, Yun said. Foreclosure sales accounted for 23% of total sales in September.
In a survey, Yun said 23% of members reported clients walking away from foreclosure sales over uncertainty in the market. The survey was conducted two weeks ago, Yun said.
“Home sales at the end of 2010 will be depressed as legal issues reduce turnover of bank owned properties, and create a broader uncertainty about home prices,” said John Lonski, chief economist at Moody’s Capital Markets Group, in a research note before the report. “A clear bottom for home prices may not be achieved until late 2011 as the backlog of distressed properties dampens activity,” he said.
