A report released by the National Association of Realtors on Thursday showed a notable decrease in U.S. existing home sales in the month of September.
NAR said existing home sales tumbled by 2.0 percent to an annual rate of 3.96 million in September after sliding by 0.7 percent to an annual rate of 4.04 million in August. Economists had expected existing home sale to drop to an annual rate of 3.89 million.
Existing home sales decreased for the fourth consecutive month, falling to their lowest level since October 2010.
“As has been the case throughout this year, limited inventory and low housing affordability continue to hamper home sales,” said NAR Chief Economist Lawrence Yun.
He added, “The Federal Reserve simply cannot keep raising interest rates in light of softening inflation and weakening job gains.”
The report said housing inventory at the end of September totaled 1.13 million units, up 2.7 percent from August but down 8.1 percent from one year ago.
The unsold inventory represents 3.4 months of supply at the current sales pace, up from 3.3 months in August and 3.2 months in September 2022.
The median existing home price for all housing types in September was $394,300, an increase of 2.8 percent from $383,500 a year ago.
“For the third straight month, home prices are up from a year ago, confirming the pressing need for more housing supply,” Yun said.