WASHINGTON–Sales of previously owned homes bounced back during September.
According to the National Association of Realtors, existing home sales ran at a seasonally adjusted annual rate of 5.47 million, which reflects a 3.2% increase from a slightly revised 5.30 million pace in August and a 0.6% increase compared to September 2015.
The median sales price of $234,200 was 5.6% higher than a year ago, marking the 55th straight month of yearly price gains, the NAR said.
The September numbers come after sales took a fall in July and August after touching a nine-year high in June. The NAR noted in its analysis that tight inventory and surging prices have been constraining the market, which was further restrained by a pullback in mortgage applications.
“Even with the affordability challenges, people want to buy,” NAR Chief Economist Lawrence Yun said in a statement.
The NAR reported that during September sales were up in all four regions of the country, ranging from a 5.8% gain in the Northeast to a 0.9% rise in the South. First-time buyers made up 34% of all transactions, the biggest share in four years.
Still, inventory tightened again. At the current sales pace, there were 4.5 months’ worth of unsold homes in September, well below the six months that historically marked a balanced market, the NAR said.