U.S. Existing-Home Sales Declined 2.2% in September
October 22 2019 - 10:30AM
Dow Jones News
By Harriet Torry and Amara Omeokwe
WASHINGTON-Sales of previously owned U.S. homes declined in
September, a sign that high prices and slim inventory continue to
dampen the housing sector despite low interest rates, strong
employment and firmer wage growth.
Existing-home sales fell 2.2% in September from the previous
month to a seasonally adjusted annual rate of 5.38 million, the
National Association of Realtors said Tuesday. Economists surveyed
by The Wall Street Journal expected sales declined 0.7% last
month.
"The housing market is in an unbalanced situation" with soaring
prices and persistent low inventory, said Lawrence Yun, the trade
group's chief economist.
Compared with a year earlier, sales in September rose 3.9%.
Purchases of previously owned homes account for the bulk of U.S.
home-buying. August's sales were revised up slightly to a 5.50
million pace from an earlier estimate of a 5.49 annual pace.
The housing market's weakness has come despite many favorable
conditions for potential buyers. Mortgage rates have been dropping
steadily in recent months. The average interest rate on a 30-year
fixed-rate mortgage at the end of September was 3.64%, down from
about 4% six months earlier, according to Freddie Mac.
Still, a shortage of homes for sale in some areas means home
prices remain high. The median sale price for an existing home in
September was $272,100, up 5.9% from a year earlier. That marked 91
straight months of year-over-year price gains and the strongest
pace of appreciation since January 2018. There was a 4.1
month-supply of homes on the market at the end of September, based
on the current sales pace.
News Corp., owner of The Wall Street Journal, also operates
Realtor.com under license from the National Association of
Realtors.
(END) Dow Jones Newswires
October 22, 2019 10:15 ET (14:15 GMT)
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