The median existing home price dropped to $199,200 in September as the seasonal decline in price continued. While prices have decreases slightly this fall, home sellers are still better positioned than they have been in recent years as we continue to post year-over-year price gains.
Existing home sales in September were at a seasonally adjusted annualized rate of 5.29 million homes. This is a dip of 1.9% from last month, but it is an increase of 10.7% when compared to September of last year. The dip seen in September is partly due to the higher interest rates we witnessed in the buildup to the Federal Reserve meeting in September, but now that the Fed has made its intentions more clear, rates should be less of a headwind in the short term for the housing market.
Inventory levels held steady through September, but the dip in buyer activity brought the months of supply up slightly to 5 months. Inventory levels remain tight due to seasonality and slow builder activity.
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