Houston, Texas: A property is available to buy on August 12, 2020.
Brandon Bell | Getty Images
According to the National Association of Realtors, sales of homes that were previously owned increased by 7% to an annual adjusted rate of 6.29 Million units in September.
Lawrence Yun (chief economist), pointed out that there was a short drop in the mortgage rates between August and September as part of their sales growth. In August, the average fixed 30-year mortgage rate fell to 3%. However, it rose significantly over the month.
Data on existing-home sales is based upon closed sales. These are likely to be contracts signed between July and August.
In September 2020, sales were 2.3% below.
The lowest sales level since July 2015 was 28% for first-time buyers.
In September, the supply of houses for sale was 1.27 Million units. This is 13% less than a year earlier. This represents an increase of 2.4 months in the supply, based on current sales.
Prices rose due to low supply. In September, the median home price was 352,800. This is 13.3% more than in September 2020. While the annual gains were high in September 2020, they are currently declining.
“As mortgage forbearance programs end, and as homebuilders ramp up production – despite the supply-chain material issues – we are likely to see more homes on the market as soon as 2022,” said Yun.
This is heavily affected by the number of properties currently for sale. Because inventory is at its lowest point, most of the activity takes place on the upper end of the market. For example, homes selling for $100,000-$250,000 saw 23% decreases in sales year-over year. However, homes sold above $1 million saw 30% growth.
The August sales of new homes, as measured by contracts signed, was 24% less than September’s. The price of new homes rose 20% due to supply chain problems and increased costs of land, labor, and materials.