US Markets
Wednesday, October 23rd, 2024 5:46 pm EDT
Key Points
- Housing inventory rose 1.5% month-to-month in September, with 1.39 million homes for sale, a 4.3-month supply, and 23% higher than September 2023 levels.
- Median home prices increased by 3% year-over-year to $404,500, marking the 15th consecutive month of price gains, while distressed property sales remained minimal at 2% due to low mortgage delinquency rates.
- Cash sales dominated the market at 30%, with homes staying on the market longer (28 days on average), and first-time buyers fell to just 26% of sales, matching the all-time low.
In September, housing inventory rose by 1.5% compared to the previous month, reaching 1.39 million homes for sale, representing a 4.3-month supply at the current sales pace. This inventory level is 23% higher than in September 2023, providing some relief to homebuyers as it increases available options. However, distressed property sales remain minimal, accounting for just 2% of all transactions, due to the low mortgage delinquency rate. Despite the rise in inventory, prices continue to climb due to overall low supply. The median home price reached $404,500, up 3% year-over-year, marking the 15th consecutive month of annual price gains.
Cash buyers are a dominant force in the market, accounting for 30% of sales in September, up from pre-pandemic levels of around 20%. Interestingly, while investor purchases fell slightly to 16% from 19% in August, cash transactions remain prevalent. Homes are taking longer to sell, with an average of 28 days on the market, compared to 21 days a year ago. Additionally, first-time homebuyers are retreating, representing only 26% of September sales, matching an all-time low from August. This continued trend of first-time buyers being squeezed out highlights the ongoing affordability challenges in the housing market.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/10/23/september-home-sales-drop-to-the-lowest-level-since-2010.html
