Inman Connect New York delivers the perfect blend of outside-the-box thinkers, cutting-edge leaders, and hard-working, successful agents. Join us Jan. 24-26 for crucial content, education, and networking opportunities to help you thrive in today’s changing market. Register here.

Sales of existing homes shouldered an eighth consecutive month of declines in September, according to data released Thursday.

Existing-home sales sagged 1.5 percent to a seasonally adjusted annual rate of 4.71 million, 23.8 percent lower than they were in September 2021 when mortgage rates were significantly lower, according to the National Association of Realtors.

“The housing sector continues to undergo an adjustment due to the continuous rise in interest rates, which eclipsed 6 percent for 30-year fixed mortgages in September and are now approaching 7 percent,” NAR Chief Economist Lawrence Yun said. “Expensive regions of the country are especially feeling the pinch and seeing larger declines in sales.”

Home sale prices continued to increase, however, jumping 8.4 percent from one year ago to $384,800 thanks to low inventory. September marked 127 straight months of yearly sale price increases, according to the NAR.

Inventory of unsold existing homes declined for the second straight month to 1.25 million by the end of September, equivalent to a 3.2 month supply at the current sales rate.

“Despite weaker sales, multiple offers are still occurring with more than a quarter of homes selling above list price due to limited inventory,” Yun added. “The current lack of supply underscores the vast contrast with the previous major market downturn from 2008 to 2010, when inventory levels were four times higher than they are today.”

The typical property remained on the market for 19 days in September, up from 16 days in August and 17 days in September 2021. 70 percent of homes sold in September were on the market for less than a month, according to the NAR.

Experts said the 1.5 drop in home sales between August and September represents relative sustainability compared to some of the dramatic fluxes recorded last year.

Despite continued small monthly declines in September, existing home sales seem to have found a somewhat sustainable level, coming in at an annualized rate of 4.71 million last month – not far off the roughly 4.8 million recorded the past two months,” Neda Navab, president of brokerage operations on Compass said in a statement. “This level is below historic and pre-pandemic averages (roughly 5.2 million-5.3 million in a given month over the past decade), but still closer to those averages than the unsustainable, record levels experienced last year.”

Email Ben Verde

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×