The National Association of Realtors have released the numbers for both existing home sales and pending home sales of September.
Existing Home Sales Decrease while Inventory and Prices Increase
Existing home sales are defined by Investopedia.com as the “sales and prices of existing single-family homes, condos and co-ops for the United States.”
Overall, existing home sales have dropped from 3.4 percent from August and are down 4.1 percent one year ago. The decline is probably due to rising interest rates, according do NAR Chief economist Lawrence Yun. The median existing home price is up 4.2 percent compared to last year and is now at $258,100. Unsold housing inventory is now at 4.4 month supply, another increase compared to last month (4.3) and last year (4.2).
The reason for these numbers? “Rising interests rates coupled with increasing home prices are keeping first-time buyers out of the market,” says Yun. However, there is hope for the market as he continues by saying, “consistent job gains could allow more Americans to enter the market with a steady and measurable rise in inventory.”
Pending Home Sales Bring More Hope
With pending home sales, or the “home sales where a contract is signed, but the transaction has not yet closed” according to Investopedia.com, there seems to be more of a bright side.
The latest news from NAR.com shows that overall, pending home sales have risen .5 percent since last month but has dropped 1 percent since last year. For the South, we have a big increase of 3.3 percent since last year, probably due to Hurricane Harvey last year.
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