Existing Home Sales Rebound in September

“Low interest rates and price gains holding steady led to September’s healthy increase, even with investor activity remaining on par with last month’s marked decline,” said Lawrence Yun, NAR chief economist. “Traditional buyers are entering a less competitive market with fewer investors searching for available homes, but may also face a slight decline in choices due to the fact that inventory generally falls heading into the winter.”

The median home price rose 5.6 percent year over year to $209,700. Single family median price was up 5.9 percent year-over-year to $210,300 in September.

Regionally, sales increased in all areas except the Midwest which fell 5.6 percent to an annual level of 1.17 million.

Inventory levels fell 1.3 percent to 2.30 million existing homes available for sale, a 5.3-month supply at the current sales pace. In September 2013 inventory stood at 2.17 million existing homes, six percent lower than current levels.

First time home buyers have represented less than 30 percent of the buyer market in the past 18 months. The September share was just 29 percent. An ideal rate for a sustainable market is considered to be 40-45 percent. A trend to apartment living as well as high student loan rates has contributed to the decrease in younger, first-time buyers.