Existing Home Sales Pick Up

The pace of existing homes sales climbed 2.4% in September to an annualized rate of 5.17 million units.

This was higher than the 5.10 million expected by economists.

“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, chief economist a the National Association of Realtors. “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 existing-home price was $US209,700, up 5.6% year-over-year.

Housing supply tightened a bit with inventory falling 1.3% to 2.30 million units. This represents a 5.3-month supply.

“Economic instability overseas is leading to volatility in the stock market and is causing investors to seek safer bets, which will likely keep interest rates in upcoming weeks hovering near or below where they are now,” said Yun. “This is welcoming news for consumers looking to buy, although they could temporarily become more cautious by less certain economic conditions.”

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