WASHINGTON—Existing-home sales fell 2.2% in September as the market "is still constrained by supply," said NAFCU Chief Economist and Vice President of Research Curt Long.
"At the current sales pace, listed inventory would be exhausted in about four months, which is well below the six-month mark that has traditionally indicated a rough equilibrium," he added.
Long noted that low mortgage rates have driven demand and increased housing starts this year could boost sales. He said "NAFCU expects more modest growth with some fluctuation in the housing market" in the coming months.
During September, sales decreased in three regions: the Midwest (-3.1%), the Northeast (-2.8%), and the South (-2.1%). Sales in the West remained flat.
Year-over-year existing-home sales increased 3.9%. The South saw the highest growth versus a year ago at 6%, followed by the West (+5.6%), and the Northeast (+1.5%). The Midwest saw no change from last year.
The median existing home price fell from $278,200 in August to $272,100 in September – a 5.9% increase from a year ago.