US home sales have experienced another slowdown in September, dropping to the weakest annual pace in almost 14 years. Existing home sales decreased by 1% last month to a seasonally adjusted annual rate of 3.84 million, as reported by the National Association of Realtors on Wednesday. This marks the slowest annual sales pace since October 2010, amidst a backdrop of easing mortgage rates and a continuous increase in available properties.
Compared to September of the previous year, sales saw a 3.5% decline. The latest figures fell short of economists’ expectations, who were anticipating a pace of 3.9 million, according to FactSet data. Despite the sluggish sales, home prices have continued to rise for the 15th consecutive month, with the national median sales price climbing 3% year-on-year to $404,500.
Lawrence Yun, Chief Economist at the NAR, commented on the stagnant sales figures, stating, “Home sales have been essentially stuck at around a four-million-unit pace for the past 12 months, but factors usually associated with higher home sales are developing.”
In summary, the US housing market continues to face challenges with a notable slowdown in home sales in September. Despite favourable mortgage rates, the market is experiencing a period of stagnation, with prices continuing to rise amidst a backdrop of limited supply and subdued demand. Economists are closely monitoring the situation to gauge the impact of these trends on the overall housing market.