September US Existing Home Sales at 3.99 Million, Topping Estimate

• The prior month's figure was 3.98 million.

Details for September

• The annualized sales rate for existing homes came in at 3.99 million, versus the estimate of 3.95 million.
• Existing-home sales increased 1.5% from August to September.
• On a regional basis, month-over-month sales rose in the South and West, were unchanged in the Midwest, and declined in the Northeast.
• Year over year, sales fell in all four regions.
• Buyers now have more negotiating power thanks to higher inventory and longer selling times.

In September, existing-home sales in the US climbed 1.5%, as reported by the National Association of Realtors (NAR). The gain provides some optimism, but the broader picture remains subdued. On a seasonally adjusted basis, August and September were the two weakest months for sales so far this year.

Lawrence Yun, NAR's chief economist, noted that recent mortgage rate increases are making qualification harder for buyers. Meanwhile, higher inventory and longer selling periods mean sellers might need to offer price discounts or other incentives. Buyers have greater negotiating leverage, but financing remains a challenge.

A quick analysis: The monthly increase is a positive sign, but one month's gain does not indicate a recovery. Year-over-year declines in all four regions point to ongoing softness. Weaker housing demand could weigh on growth and support lower yields at the margin, though this report alone is unlikely to alter the Federal Reserve's policy outlook.

This report tracks completed transactions of previously owned homes, including single-family houses, condominiums, and co-ops. The headline figure is seasonally adjusted and annualized, converting the monthly pace into an annual rate. Traders follow this report for clues on housing demand and the impact of mortgage rates.