Existing home sales fall slightly in September

“More people are attempting to buy homes than are able to qualify for mortgages, and recent price increases are not deterring buyer interest. Rather, inventory shortages are limiting sales, notably in parts of the West.”

The national median home price recorded its seventh back-to-back monthly increase from a year earlier, up to $183,900 in September, 11.3 percent higher than a year ago. 

The last time there were seven consecutive monthly year-over-year increases was from November 2005 to May 2006.

Meanwhile, the national average rate for a 30-year-fixed mortgage fell to a record low 3.47 percent in September from 3.60 percent in August. The rate was 4.11 percent in September 2011.

Distressed homes, foreclosures and short sales sold at deep discounts, accounted for 24 percent of September sales, up from 22 percent in August and down from 30 percent a year ago. 

Foreclosures sold for an average discount of 21 percent below market value in August, while short sales were discounted 13 percent.

Total housing inventory at the end September fell 3.3 percent to 2.32 million existing homes available for sale, which represents a 5.9-month supply at the current sales pace, down from a 6-month supply in August. Listed inventory is 20 percent below a year ago when there was an 8.1-month supply.

“The shrinkage in housing supply is supporting ongoing price growth, a pattern that could accelerate unless home builders robustly ramp up production,” Yun said.

First-time home buyers accounted for 32 percent of purchasers in September, compared with 31 percent in August.

All-cash sales were at 28 percent of transactions in September, up from 27 percent in August.

Investors, who account for most cash sales, purchased 18 percent of homes in September, unchanged from August and on par with a year ago. 

Single-family home sales declined 1.9 percent to a seasonally adjusted annual rate of 4.21 million in September from 4.29 million in August, but are 10.8 percent higher than the 3.80 million-unit level in September 2011. 

Regionally, existing-home sales in the Northeast fell 6.3 percent, they slipped 9 percent in the Midwest and were down 3.4 percent in the West. 

The South saw a small increase of 0.5 percent, 14.2 percent above September 2011.