Rapid Reaction: September Existing Home Sales

• September existing home sales rose a better-than-expected 3.47 percent from August, to 5.47 million units (SAAR), reversing two consecutive monthly declines. Sales were up 0.6 percent from a year ago.
• September sales volume was just below this year's June peak. August data was revised downward, making August the worst month this year for existing sales since February.
• The median existing home price for all housing types in September was $234,200, up 5.6 percent from September 2015. September's price increase marks the 55^th consecutive month of year-over-year gains.

It seems there's little that can dent home buyer demand these days. Low inventory is a drag, but after a brief two-month dip in existing sales volume, sales came back strongly in September. It remains difficult for first-time buyers in particular to find a home in their price range, save for a down payment and qualify for a loan, but still they won't be denied. Over the past year, almost half of people buying homes were first-time buyers, according to a recent Zillow survey, and NAR's data shows the share of first-time home purchases is at its highest level since July 2012. That this critical group is finding ways to persevere is a testament to the strength of the housing recovery and the value Americans continue to place on homeownership. Still, the imbalances in the market between low supply and high demand are unsustainable in the long run, and are putting a lot of upward pressure on home prices: Prices for existing homes have risen for 55 straight months. Competition is fierce and bidding wars all-too-common, and only 46 percent of buyers get the first home on which they make an offer, according to the Zillow survey. This can lead to a lot of frustration for buyers, and sellers remain in the driver's seat in this market.