Existing homes sales remain high, but inventory is “historically low”

September sales for existing homes beat August’s 14-year record

National /
Oct.October 22, 2020 11:30 AM
Existing home sales rose again in September as listed inventory sunk to a new low. (iStock)

Existing home sales rose again in September as listed inventory sunk to a new low. (iStock)

Sales for previously owned homes surged for a fourth consecutive month, but the number of properties for sale sunk to a new low.

In September, 6.5 million homes sold, seasonally adjusted, according to the National Association of Realtors’ monthly report — a jump of 9.4 percent compared to August. Sales were also up 21 percent year-over-year.

While demand is high, supply is low: Existing housing inventory sank to a record low of 1.47 million, which would be sold within 2.7 months at the current sales rate.

September’s inventory is a 1.3 percent drop compared to August levels, and about 19 percent compared to September 2019.

The median sales price continued to climb, clocking in at more than $311,000. The median sales price for existing homes surpassed $300,000 for the first time in July.

According to NAR, 71 percent of the 6.5 million homes sold were on the market for less than a month. About a third of September’s homebuyers were purchasing their first home, while 12 percent of buyers were snapping up a second home or investment property.

Lawrence Yun, NAR’s chief economist, said September’s surge in sales deviates from the typical dropoff that occurs at the start of fall. He attributed the difference in consumer behavior to low mortgage rates and “an abundance of buyers,” in part those looking for vacation homes now that working from home has become more prevalent.

Yun noted that low inventory continues to represent a significant headwind for the sales market.

“There is no shortage of hopeful, potential buyers, but inventory is historically low,” he said. “We have seen some homebuilders move to ramp up supply, but a need for even more production still exists.”





    Related Articles

    arrow_forward_ios
    Prices increased 6.6 percent year-over-year in September (iStock)

    US home prices surged 6.6% in September

    US home prices surged 6.6% in September
    From left: Edison Properties CEO Robert Selsam, Ironstate Development's Michael Barry, Stellar Management founder Larry Gluck (LinkedIn; Gluck Family Foundation)

    These developers could benefit the most from Soho’s rezoning

    These developers could benefit the most from Soho’s rezoning
    176 North 6th Street and 16 South Portland Avenue in Brooklyn (StreetEasy; Google Maps)

    Brooklyn luxury market surges with nearly $73M in contracts

    Brooklyn luxury market surges with nearly $73M in contracts
    1045 Madison Avenue and 300 Central Park West (The Benson; Wikipedia Commons)

    Manhattan luxury market shows signs of progress with 25 deals

    Manhattan luxury market shows signs of progress with 25 deals
    TikTok's biggest stars include (from left) Bryce Hall, Griffin Johnson, Addison Rae, Charli D'Amelio and Dixie D’Amelio (Getty)

    Firm that manages TikTok party houses goes public

    Firm that manages TikTok party houses goes public
    RMBS then and now: Do securitized home loans still matter?

    RMBS then and now: Do securitized home loans still matter?

    RMBS then and now: Do securitized home loans still matter?
    From left: LX Collection's Justin Kitrosser, Terry Villani and Jared Seeger (Photos via LX Collection)

    New platform aims to be “Neiman Marcus” of luxury listings

    New platform aims to be “Neiman Marcus” of luxury listings
    The Studio City house that stood in for Kris Jenner’s home on “Keeping Up With The Kardashians” is back on the market (Photos via Zillow; Getty)

    Fake Kardashian home in Studio City gets price bump

    Fake Kardashian home in Studio City gets price bump
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...