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Today the National Association of Realtors (NAR) reported that after a disappointing August, home sales increased handsomely in September for all major regions (South, West, Northeast and Midwest) of the country. In fact, according to NAR, home sales have increased year-over-year for the last 12 successive months.
Existing-home sales—including single-family homes, townhomes, condominiums and co-ops—saw a 4.7 percent increase to a seasonally adjusted annual rate of 5.55 million in September, marking an 8.8 percent increase from a year ago.
Important Facts:
- The median existing-home price in September was $221,900, a 6.1 percent increase from a year ago
- Total housing inventory decreased 2.6 percent by the end of September to 2.21 million existing homes for sale, 3.1 percent lower from September 2014
- Only 29 percent of September sales went to first-time buyers, a 3 percent decrease from August
NAR chief economist and senior vice president of research Lawrence Yun addressed the sales increase, “September home sales bounced back solidly after slowing in August and are now at their second highest pace since February 2007. While current price growth around 6 percent is still roughly double the pace of wages, affordability has slightly improved since the spring and is helping to keep demand at a strong and sustained pace.”
The increase in home prices and decrease in number of homes may prove significant obstacles to continued existing-home sale increases, but factors like better affordability may help counteract these barriers and make the dream of homeownership a reality for hopeful Americans.