September Existing Home Sales: Paying Dividends

• September existing home sales rose 7% from August to 6.29 million (SAAR), but were down 2.3% from a year ago, according to the National Association of Realtors (NAR).
• The median existing-home price for all housing types in September was $352,800, up 13.3% from September 2020.
• Total for-sale inventory as measured by NAR was down 0.8% from August and down 13% from a year ago.

September existing home sales soundly beat expectations and recorded their fastest annualized pace since last fall, recovering ground lost in August and illustrating the fact that even slight tilts in market conditions towards buyers can pay real dividends in increased sales activity. Sales remain well below last October's peak, when homebuyers rushed back into the housing market following the brief COVID-19 recession in a burst of demand that had been pent up during the pandemic lockdowns. Sales volumes retreated from those highs in the face of rapidly diminishing inventory, intense bidding wars on newly listed properties and an exceptionally fast-moving market that all served to discourage would-be buyers. But for-sale inventory and the number of days homes typically spend on the market before selling both inched a little higher in September, giving would-be homeowners a few more options and a little more time to make the final purchase decision. Still, despite these incremental adjustments in favor of buyers, market conditions remain historically favorable for sellers -- keeping the often volatile push-pull dynamic between sellers trying to maximize returns and buyers trying to find the best value firmly in place.