• Existing home sales increased in September, rising 0.7 percent from August to 5.39 million units at a seasonally adjusted annual rate (SAAR), the first monthly increase since May.
• Hurricanes that hit south Texas and Florida in late August and early September posed a modest headwind to sales, which otherwise would have been higher.
• Inventory increased for the first time since May and reported its largest increase since late 2010.

September existing home sales increased 0.7 percent from August, reaching 5.39 million units at a seasonally adjusted annual rate (SAAR), according to the National Association of Realtors (NAR). It was the first monthly increase since May and came on the heels of a disappointing summer in which sales consistently missed expectations. Sales are down 1.5 percent from last September, the first year-over-year decline since a brief drop in July 2016.

A strong month-over-month increase in sales in the West (up 3.3 percent) more than offset a modest decline (down 0.9 percent) in the South, which continues to recover from hurricanes early in the month. Sales are down in all major regions year-over-year, except in the West where they are flat.

Hurricane Irma – which hit Florida and Georgia early in September – as well as lingering effects of Hurricane Harvey – which hit South Texas in late August – had a modest effect on home sales, which otherwise would have been higher. If home sales in the South (which includes Florida, Georgia and Texas) had increased in line with the average elsewhere in the country, nationwide home sales would have increased 1.8 percent to 5.45 million units (SAAR) instead of the 0.7 percent increase reported.

For-sale inventory – the number of homes (single-family homes and condos/coops) on the market — increased 3.8 percent in September to 1.81 million units (SAAR), the first month-over-month increase in for-sale inventory since May, and the largest month-over-month increase in inventory since August 2010 (in percentage terms) and since December 2010 (in level terms). It remains down 6.4 percent year-over–year. The increase was particularly strong, because the inventory of single-family homes increased considerably (up 72,000 units), while the inventory of condos/coops dropped (down 5,000 units). In recent months, inventory of condo/coops has been somewhat looser than inventory for single-family homes.

The median seasonally adjusted price of existing homes sold in September touched a new all-time high of $245,520, up 0.4 percent from August and up 4.1 percent over the year. Sale prices were up in all major regions except the West, where they fell 1.4 percent. Over the year, sale prices are up about 5 percent in all major regions.